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This same thing actually happened to me about a year ago in my speculation trading account. Here is a screenshot of what my account looked like on Saturday even

This same thing actually happened to me about a year ago in my speculation trading account. Here is a screenshot of what my account looked like on Saturday evening. https://i.imgur.com/a2JmlyQ.jpg https://i.imgur.com/a2JmlyQ.jpg Of course, I have a fairly advanced understanding of options and knew it was mathematically impossible to have lost that amount, so to me it was just a humorous and quirky bug in some startup software. What I think needs to be noted is that the only way this young man would have gotten access to the level of options required to place a trade like that was to deliberately lie on his account application. Someone who was qualified to have the level of trading access he had would have immediately known he wasnt $780k in the hole. So while Robinhood wrote some bad code, there is some personal responsibility that should be assigned here. Such a sad situation.

ahelwer 6y ago
Not sure about that last part. For some color, here's the Robinhood UI for buying calls: https://twitter.com/neoliberal_dad/status/1357784835847299076 https://twitter.com/neoliberal_dad/status/135778483584729907...
- missedthecue 6y ago
  I'm not talking about the UI, I'm talking about the application you fill out to get access to level 2 options permissions
  - ahelwer 6y ago
    In what way would he have had to lie on the application? Is it something like "yes I have read these enormous pages you've thrown at me and know what I am doing"?
    - nightski 6y ago
      No, it's a simple form that you have to fill out at every brokerage nowadays. It asks questions about your risk tolerance, how well you handle volatility, etc...
    - nyczomg 6y ago
      More than that. Questions like “What is your net worth?” And questions about your experience level with stocks and options. He most likely lied. But Robinhood obviously makes no attempt to verify the answers. If two kids, one riding on the other’s shoulders inside of a trench coat walked into a bank and claimed to be an adult, you’d put at least some blame on the bank if those kids walked out with a loan.
      - bryan_w 6y ago
        > If two kids, one riding on the other’s shoulders inside of a trench coat walked into a bank and claimed to be an adult, you’d put at least some blame on the bank if those kids walked out with a loan. A kid lying to an adult is different from an adult lying to an adult.
lazyasciiart 6y ago
Having not used Robinhood, can you explain what he had to say to get this access?
- missedthecue 6y ago
  You'd have to lie about your income and experience level, and the amount of time you've been trading
  - grecy 6y ago
    Do you know that for sure? I recently applied for (and was granted) the ability to trade options. For the question "How long have you been trading options?" I wrote "never - because I can't yet". My application was approved.
    - nightski 6y ago
      Options aren't binary. There are different levels of options access. Not all options are as dangerous as others. Buying calls or puts is pretty safe (by safe I don't mean you won't lose your money, just that your downside is limited to the initial cost).

ahelwer 6y ago

Not sure about that last part. For some color, here's the Robinhood UI for buying calls: https://twitter.com/neoliberal_dad/status/1357784835847299076 https://twitter.com/neoliberal_dad/status/135778483584729907...

missedthecue 6y ago
I'm not talking about the UI, I'm talking about the application you fill out to get access to level 2 options permissions
- ahelwer 6y ago
  In what way would he have had to lie on the application? Is it something like "yes I have read these enormous pages you've thrown at me and know what I am doing"?
  - nightski 6y ago
    No, it's a simple form that you have to fill out at every brokerage nowadays. It asks questions about your risk tolerance, how well you handle volatility, etc...
  - nyczomg 6y ago
    More than that. Questions like “What is your net worth?” And questions about your experience level with stocks and options. He most likely lied. But Robinhood obviously makes no attempt to verify the answers. If two kids, one riding on the other’s shoulders inside of a trench coat walked into a bank and claimed to be an adult, you’d put at least some blame on the bank if those kids walked out with a loan.
    - bryan_w 6y ago
      > If two kids, one riding on the other’s shoulders inside of a trench coat walked into a bank and claimed to be an adult, you’d put at least some blame on the bank if those kids walked out with a loan. A kid lying to an adult is different from an adult lying to an adult.

lazyasciiart 6y ago

Having not used Robinhood, can you explain what he had to say to get this access?

missedthecue 6y ago
You'd have to lie about your income and experience level, and the amount of time you've been trading
- grecy 6y ago
  Do you know that for sure? I recently applied for (and was granted) the ability to trade options. For the question "How long have you been trading options?" I wrote "never - because I can't yet". My application was approved.
  - nightski 6y ago
    Options aren't binary. There are different levels of options access. Not all options are as dangerous as others. Buying calls or puts is pretty safe (by safe I don't mean you won't lose your money, just that your downside is limited to the initial cost).