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This is clearly photo shopped right? I mean going up vs going down? and the high vs medium risk statement is, at best, debatable. If this is real, can anyone

This is clearly photo shopped right? I mean going up vs going down? and the high vs medium risk statement is, at best, debatable. If this is real, can anyone shed light on how they ensure a user has the capital required to purchase options? ie if I purchase 1 calls of GOOG and they expire ITM what does Robin Hood do if I dont' have $10,000 in cash for the exercise?

jitl 9y ago
In the thread they say Robinhood doesn’t allow selling calls if you don’t hav the shares already.
- chollida1 9y ago
  Sure, that makes sense, but i asked about buying calls and not having cash to settle the transaction at expiry.
  - Basketb926 9y ago
    According to Robinhood, "If you don’t have enough buying power to exercise your option, we’ll sell the contract in the market for you about 1 hour before it expires." https://support.robinhood.com/hc/en-us/articles/115005656423-Expiration-Exercise-and-Assignment https://support.robinhood.com/hc/en-us/articles/115005656423...
    - perl4ever 9y ago
      That seems scary to me, because even if it normally works, if it fails, it's presumably not something customer service can "make ok" especially because they aren't charging you commissions and you are, as they say, the product not the customer. At this point, customer service of the major discount broker I've used for many years is so abysmal that the last thing I want is a free alternative that promises to do more for me. It makes me think of how impossible it is to deal with Google when something goes wrong with their free offerings. I think social media has become a societal problem because there is so much revenue available from exploiting addictive behavior, and the logic has to lead to brokers trying to catch up. If you are sensible with investing, the system doesn't need or want you.
  - TheHypnotist 9y ago
    Unless I'm misunderstanding the question, in this case you would not exercise your option and just be out the cost of the contract. Edit: Turns out I did sort of misunderstand. The question has been answered.
  - 2trill2spill 9y ago
    Sell your contract. You don't need to exercise a call option you purchased unless you want to.
acchow 9y ago
> ie if I purchase 1 calls of GOOG and they expire There shouldn't be holding requirements for going long on options. At the most you lose your hypothetical gains (tho, wouldn't most brokers be nice enough to automatically exercise-and-sell for you for a small commission?) The problem is when you write options.

jitl 9y ago

In the thread they say Robinhood doesn’t allow selling calls if you don’t hav the shares already.

chollida1 9y ago
Sure, that makes sense, but i asked about buying calls and not having cash to settle the transaction at expiry.
- Basketb926 9y ago
  According to Robinhood, "If you don’t have enough buying power to exercise your option, we’ll sell the contract in the market for you about 1 hour before it expires." https://support.robinhood.com/hc/en-us/articles/115005656423-Expiration-Exercise-and-Assignment https://support.robinhood.com/hc/en-us/articles/115005656423...
  - perl4ever 9y ago
    That seems scary to me, because even if it normally works, if it fails, it's presumably not something customer service can "make ok" especially because they aren't charging you commissions and you are, as they say, the product not the customer. At this point, customer service of the major discount broker I've used for many years is so abysmal that the last thing I want is a free alternative that promises to do more for me. It makes me think of how impossible it is to deal with Google when something goes wrong with their free offerings. I think social media has become a societal problem because there is so much revenue available from exploiting addictive behavior, and the logic has to lead to brokers trying to catch up. If you are sensible with investing, the system doesn't need or want you.
- TheHypnotist 9y ago
  Unless I'm misunderstanding the question, in this case you would not exercise your option and just be out the cost of the contract. Edit: Turns out I did sort of misunderstand. The question has been answered.
- 2trill2spill 9y ago
  Sell your contract. You don't need to exercise a call option you purchased unless you want to.

acchow 9y ago

> ie if I purchase 1 calls of GOOG and they expire There shouldn't be holding requirements for going long on options. At the most you lose your hypothetical gains (tho, wouldn't most brokers be nice enough to automatically exercise-and-sell for you for a small commission?) The problem is when you write options.