Help, i fucked up

so you can short sell a bunch of shit and if you lose RH is stuck with the loss? lmao

it wasn't a short sell it was a spread

Really? I thought that Robinhood required that you own enough shares as collateral before writing any calls. After you put in the order to sell a call, you're not able to sell those shares. I would be surprised if Robinhood allowed writing naked options, given what I assume is their target audience.

What happens if you don't pay OP ? Are they gonna take your tendies away ?

Yes. RobinHood cannot actually get more money from you than what's in your account. I mean, they might try to ask for it but you can always play it off as "nephew had my phone"

It was NOT NAKED
I wrote several 29 calls and BOUGHT equally as much 30's
I was partially assigned after today because I didn't close the position before closing (at least that's what they said) plus interest/fees

not equally as much 30'a, just enough to get a credit
I've been drinking heavily tonight sorry frends

I'm not familiar with how Robinhood handles spreads. Are you saying that Robinhood lets you cover calls by buying calls? Sorry for your loss anyway.

if it's a spread yes, it's called a call spread

Let's have story time with Peter Lynch. Apparently OP was not actually "short selling," but the same principle applies to the kind of gamble he took.

SHORTING A STOCK

You’ve no doubt heard of this ancient and strange practice, which enables you to profit from a stock that’s going down. (Some people get interested in this idea by looking at their portfolios and realizing that if they’d been short instead of long all these years, they’d be rich.)

Shorting is the same thing as borrowing something from the neighbors (in this case, you don’t know their names) and then selling the item and pocketing the money. Sooner or later you go out and buy the identical item and return it to the neighbors, and nobody is the wiser. It’s not exactly stealing, but it’s not exactly neighborly, either. It’s more like borrowing with criminal intent.

What the shorter hopes to do is to sell the borrowed item at a very high price, but the replacement item at a very low price, and keep the difference. You could do it with lawn mowers and garden hoses, I suppose, but it works best with stocks—especially stocks that are inflated in price to begin with. For instance, if you figured out that Polaroid was overpriced at $140 a share, you could have shorted 1,000 shares for an immediate $140,000 credit to your account. Then you could have waited for the price to drop to $14, jumped in and bought back the same 1,000 shares for $14,000, and gone home $126,000 richer.

“The person from whom you borrowed the shares originally will never have known the difference. These transactions are all done on paper and handled by stockbrokers. It’s as easy to go short as it is to go long.

Before we get too excited about this, there are some serious drawbacks to going short. During all the time you borrow the shares, the rightful owner gets all the dividends and other benefits, so you’re out some money there. Also, you can’t actually spend the proceeds you get from shorting a stock until you’ve paid the shares back and closed out the transaction. In the “Polaroid example, you couldn’t simply take the $140,000 and run off to France for a long vacation. You are required to maintain a sufficient balance in your brokerage account to cover the value of the shorted stock. As the price of Polaroid dropped, you could have taken some of the money out, but what if the price of Polaroid had gone up? Then you would have had to add more money to cover your position.

The scary part about shorting stock is that even if you’re convinced that the company’s in lousy shape, other investors might not realize it and might even send the stock price higher. Though Polaroid had already reached a ridiculous plateau, what if it had doubled once more to an even more ridiculous $300 a share? If you were short then, you were very nervous. The prospect of spending $300,000 to replace a $140,000 item that you’ve borrowed can be disturbing. If you don’t have the extra hundred thousand or so to put into your account to hold your position, you may be forced to liquidate at a huge loss.

Among all the folk tales of successful short sellers are the horror stories of shorters who watched helplessly as their favorite lousy stocks soared higher and higher, against all reason and logic, forcing them into the poorhouse. One such unfortunate was Robert Wilson, a smart man and a good investor, who a decade or so ago shorted Resorts International. He was right, eventually—most shorters are right, eventually—didn’t John Maynard Keynes say in the long run “we all are dead”? In the meantime, however, the stock advanced from 70 cents to $70, a modest 100-bagger, leaving Mr. Wilson with a modest $20 or $30 million loss.

This tale is useful to remember if you’re contemplating shorting something. Before you short a stock, you have to have more than a conviction that the company is falling apart. You have to have the patience, the courage, and the resources to hold on if the stock price doesn’t go down—or worse, goes up. Stocks that are supposed to go down but don’t remind me of the cartoon characters who walk off cliffs into thin air. As long as they don’t recognize their predicament, they can just hang out there forever.

you only live once and you fucked it up

Uhhhhh no. RH is going to eventually pursuit a summary judgement, and will win, OP will be court ordered to pay, and will seize assets, garnish wages, whatever they need to do, go ahead and try to get out of it at this point, that's when you open yourself up to criminal charges including jail time.

They will just ban the OP and his social security from ever trading on RobinHood. The rest is priced in.

Again, no. The fact that you think any legitimate organization is going to simply take a loss of 45K and move on with their day is beyond ignorant. RH will get their money. The processs that I described isn't going to happen overnight, but it will most definitely happen over the next 2 years.

This.
OP, get your fiscal asshole ready for RH's enormous legal cock. Sorry bro, don't fuck with leverage.

>Stocks that are supposed to go down but don’t remind me of the cartoon characters who walk off cliffs into thin air. As long as they don’t recognize their predicament, they can just hang out there forever.

It's really a bit amazing how much of the economy is like this. It's a real "fake it till you make it" kind of deal that works until it suddenly doesn't and gravity hits like a truck.

How long did those subprime loans go before someone major decided to cash out and cause the domino effect. It's not like it being a tower of cards was a secret for those in the real knowhow.

I'm hoping to pay them back before then, I understand it's their money and I'll do what I can

holy shit, and congress is worried about crypto when these types of insane casinos exist on peoples' cell phones. JUST

>Again, no. The fact that you think any legitimate organization is going to simply take a loss of 45K and move on with their day is beyond ignorant.
I'm still lolling at writing "the rest is priced in". Yeah, OP is fukked.

Doesn't hurt to try "someone punched me in the nose and stole my phone" though.

I dunno if it'll work at all as my example is from a car loan, but if you drag it out for awhile they may be willing to settle for less than that amount down the line. I'd say your days trading on RH are done for good, and I wouldn't doubt at all that you'll be flagged for other brokers, just an FYI on the larger situation, so if you have another brokerage know that this may lead to them locking you out as well.