4 ms·

It's a pretty well known Robinhood "glitch" at this point. Has to do with how they handle assigned/exercised legs of option spreads. Example: https://old.redd

• jerednel 6y ago
  Well also, on pretty much every brokerage, if you get assigned a leg of a spread while your position is ITM then your balance drops through the floor far beyond what your max loss is. But that's just temporary until you close the position fully. I would hope that isn't what happened here because he could have just closed the other side of the assigned leg and accepted a much more modest loss. edit: this is where a standard brokerage shines. when this first happened to me i called TDA and they walked me through how to get out of my shitty position. Not sure you can do the same with RH.
• dirtnugget 6y ago
  That is one pretty scary "glitch" as it seems to want to enforce the loss
• thephyber 6y ago
  When I first saw the headline, I immediately thought of /r/wallstreetbets That SubReddit glorifies playing fast and loose with silly bets.
• mam2 6y ago
  it's not really a glitch it's you're actual current balance.