Robinhood is taking actions to curb investor misunderstandings and shortfalls, through increasing educational resources and cleaning up the user interface. Yahoo Finance’s Jared Blikre breaks down the details Robinhood’s newest changes.
#Robinhood #investing #stockmarket
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Options trading: The crack cocaine of the trading world.
lmao
😂😂😂😂
Do you know what would have avoided that young man from taking his life is Robin Hood actually had a call sensor where you can call them at any given moment and speak to a representative to get to the bottom of that young man’s misunderstanding but since they only email back-and-forth and it takes forever for them to reach you back your left at the moment helpless and God knows what he was thinking. FYI I happened to use Robin Hood for my stock trade and margin trading I would not touch it with 100 foot pole
It’s impossible to save people from themselves. 😶
Call center? From a commission-free platform? Who’s supposed to pay for that? Seems like people want so much for so little.
whats an options trade?
Options trade is a trade for stock markets that can lead to suicidal tendency when incorrectly administrated.
Normally if you buy a stock it can go up, down, or stay the same. You can sell the stock whenever you want. An option is similar but you have to guess which direction the stock will go, by how much, and by a specific date. If you are correct you can make a lot more money that stock trading. If you are wrong, you can lose a LOT more money that simply buying/selling stocks. There’s more to it, but this is the gist.
Sir BaconHam But he wasn’t just buying options, he was writing them which is even riskier.
They’re essentially a contract to buy 100 shares at a certain price or premium. The premium which you are essentially trading for value has multiple factors which pile into its value, but specifically delta I am referring to. When the underlying stock that you choose goes up say 2 dollars from $100, your delta could per say go from 2.00 to 3.88. Now your premiums value is not actually 3.88 it’s based on 100 shares so multiple this times 100 and each contract is worth $200 then $388. A measly two percent move for the stock could move your investment two fold. The risk in this is that a move in the opposite direction can just as quickly deplete your capital and bankrupt you. Options are definitely the riskiest form of securities, if you are trading them I would use them to offset losses and give up a small stake of your portfolio in. Buying naked options also is more expensive as time is priced into the value and affects the value by lowering it as it reaches the expiration date of the contract, where the contract expires and fulfills, and you buy or sell 100 shares at a certain price! If you really want to get into them I recommend debit spreads as this is a way to lower your risk vs reward in the sense of capital expenditures. I hope this can give you some insight into options atleast
I turned $36 into 12k in about 2 months with options 🤴
Fucking finally
Stupidity kills
Everything must be overly complicated and confusing so the insiders who know the game in and out can exploit those who don’t.
Much of our college education is designed around teaching simple concepts that have been made confusing in industry.
Take legal notices for instance. Nobody but a lawyer (who is paid to do so) will read all the tiny little print but why does it have to be that way. It don’t. Simple clear readable English could suffice but the game of life is to confuse people into exploitation. 😶
my solution that I just recently thought of ( and ongoing solution ) will be to buy prepaid legal services — handful of websites that offer those services just a click away — pay them to read and tell me in plain english what I can do cant do and what they can do cant do
The guy didn’t put any time into researching options. He exploited himself and then offed himself for a reason that didn’t exist
There was that one trader that legitimately turned 2000 to -9m by buying oil futures when they were worth -37
BS
That math makes no sense. To be down 9 million on oil at – 37 a barrel, you’d have to own over 240,000 barrels of oil. Which means he would have paid on average less than one tenth of a penny for each barrel. You couldn’t even buy that much exposure to oil while the price was plummeting from 0 to – 37, and he’d also have had to sold it all at the very bottom. Even with leverage this makes no sense because you’d need at least 20% margin so he’d only be able to amplify his losses by 5x, which means he still would have had to have lost 1.8 million on an unleveraged basis.
Robin Hood execs should go to jail. It entices unsophisticated retail investors in to be taken advantaged of by HFT.
*PSYCHIATRIC DRUGS MAKING PEOPLE COMMITTE SUICIDE, NEVER ADDRESSED AND YET ANOTHER REGULATION ON OPTIONS????*
those drugs def making ppl crazy
Obviously an inexperienced investor. No way he ever would have had to pay it back.
You can lose more than you invest and yes you are obligated to pay it back but this kid did not lose that much. It only appeared that way because he was using an advanced strategy and the trade was only halfway through closing. He also had a credit pending that was probably around 700k as well that would have returned his balance to a more normal level.
WSB STONKS ONLY GO UP
Honestly, if you know nothing about finance, don’t try to beat the market. It’s a hard game for professional investors…people shouldn’t look at it as a game.
Good good… Let professional investors handle your money and use your money to earn fat stacks for themselves
You have to start somewhere
I bet advanced charting would have been a life changing tool to have.
Guess I’m going to have to grind longer to play with those that already made their money. That’s pretty depressing. Makes me feel like the struggle isn’t worth it. 😄
I don’t get why folks touch things they don’t understand.
Because apps are promoted with language that “you can do it”. People are duped into “do it yourself” in every corner of life. There’s money to be made off of their failures too.
How it is possible to go -700k? What was his balance and margin allowance?
Jimmy Felton so he didn’t owe 700k?
@Kaptain nope
@Kaptain Right his balance showed around -700k but there was also a similar sized credit pending (around +700k) which would have brought his balance back to normal.
“Back to normal” meaning a more realistic amount. He may have lost his entire account, or he may possibly have even made a profit not sure Robinhood is not releasing the details, but he didn’t lose 700k.
Jimmy Felton wow that’s just sad.
Well, you know what Buffet says about derivatives and stuff
Only pros should touch options like me… degenrate gamblers assemble .. JPM 105 7/2
SPY 318c 6/23
@Sam Ling OAS 1 8/21
@Sam Ling idk why you’d still buy calls, the 🐻 market is coming back 😈
Amazing that Robinhood, a company that caters to new traders allows options without atleast a small questionnaire.
It’s really up to the individual to know what your buying and what it costs. That’s why people go to school to learn this stuff. poor kid. He didn’t even know what he was doing
You’re wrong. There are many requirements. You can’t just get on there today and immediately start trading options.
It is terrifying to have the short leg of your spread exercised early and the stock in between strikes. Wish he had waited or simply called Robinhood. Options can be really complex and frustrating.
Lmao call robbinhood? They don’t have phone support you twat
@Raymond West email response time is like 48 hours max. What idiot can’t wait for an email?
BlackMonday 2020 started?
Hey, Robinhood… How about streamlining your servers for option trading so bullshit like this doesn’t happen again??? Too often users have slow to no option trade execution, even with high liquidity positions, causing people to miss out on profits and/or incur losses because of the horrible trade execution. Robinhood wants to act like a real brokerage but it conducts business like a FX market maker. Terrible…
What option strategy did he use to incur that kind of loss?
Sadly it was a UI issue on RH that guy was only down a couple grand.
he was doing some form of spread. not naked puts/calls.
That young man was accountable for his own life……end of story
X Z while tragic, I think he didn’t know what he was doing and didn’t fully understand the concepts of options trading. 100’s if not thousands of people have a negative balance of hundreds thousands of dollars everyday it’s a pretty normal spread in the option world that this individual over reacted to because he was uneducated. I don’t think RobinHood should change anything but we should still mourn the young man’s suicide.
SAD
So its robinhood’s fault? Ok
It was a UI issue and ignorance. He was only out a couple thousand maybe.
Robinhood doesn’t tell you anything. They shouldn’t have to. It’s up to you the investor to understand what your buying and what it costs
I truly hope I don’t need to go through snakes and barrels to trade options when I have studied options trading for 2 months and just had 100 dollars worth of experimentation money to try it. I swear to god Robinhood, please don’t make high risk option trades anymore harder by gate keeping then it is to amass the wealth to buy these contracts. I literally am working a minimum wage job just to get money for options. Please don’t Price block me with new regulations due to this young man’s unfortunate passing. Making more psychological risk tests and teaching of options is fine (Just watch projectoption’s 2 hour video on options and practice some math to get an understanding and you’ll be fine), but don’t let these levels be price gates where I as a options trader needed to have certain thresholds in my account to buy a certain contract. I don’t care if it takes me 3 months to get 4,000 bucks of investing money, I’ll be damned if you guess restrict my investing freedoms when I know what I am doing and can digest the risk.
Sadly, one delicate snowflake has ruined it for all of us.
As sad as this was that kid had deeper issues. This is why we end up with all these ridiculous regulations in the US regarding trading because people don’t want to be responsible for their own actions and want to blame someone when things go wrong. If he made a million dollars he wouldn’t blame anyone for that. He was gambling and lost. Don’t mean to sound insensitive but that’s the truth.
If you don’t know anything bout options maybe you should leave it alone or if you want to learn trade penny stocks wit a lesser risk
Would we be having this conversation if he got 700,000 from trading options. Can’t have it both was TOOOOO MUCH INFORMATION AND VIDEOS to not be accountable for your actions
cause they caused the guys death
I felt daunted by the disclaimer and contract that I never started options trading I felt like I was way under qualified and that Robinhood was putting way too many people in a position they should be licensed for.
Robinhood helpdesk does not know what after hours trading is. I asked why I don’t have after hours trading feature, no one can answer that question. What a joke these ppl are.