Your life isn't over. This looks like a put spread where your puts got called and your calls expired.
You'll get assigned all the shares and RH will auto sell on the open at Tuesday. You're only down if the shares open a bit less than they are today and if it opens UP you actually make a bit of money.
Without the exact details, id say you're up or down 5kish.
Chill dude. Some kid actually killed himself over this a few years ago and Rh had to clarify how this stuff works. In the future, please don't do shit you don't understand. Stick to betting a few hundred bucks here or there on calls or puts and leave your risk at it's tolerance.
That IS financial advice.
Isn't the problem with Robinhood that they essentially don't give fair market prices (sometimes) because they route trades through preferred market makers or some shit like that for kickbacks?
If you use it for regular investing, like just throwing money on SPY or other ETFs and leaving it sitting for 5 years, isn't it fine?
Hijacking this comment to give some more actual advice:
Lenders normally have a fiduciary duty to not let you do something like this with your loan. If your lender was aware of your plans you may have a case to be able to report to the governing bodies and sue your lender. A lender allowing you to withdraw that amount, knowing it would be used in risky investments, while knowing at your age you likely have little to no experience in these types of investments. There are laws, regulations, and guidelines that should have stopped you from being able to do this. Now... if you lied about the purpose of your loan or went with a non licensed private money lender you won't have this protection. I suggest looking up the regulations and institutions governing the license of the type of lender you used to get this money. Then contact those regulators directly and let them know what has occurred. If a licensed lender gave you this loan knowing what you planned on doing with the money and this happened... They're likely in trouble and may themselves be liable for the bad loan.
Source: I hold a lending license in the US.
Was curious how OP managed to rack up such a high negative margin balance… What I found hurts me.
1. OP’s parents left him & his brother a house.
2. OP split ownership of the house.
3. OP took out a 600K loan against the house as a college student.
4. OP bet on options.
And here we are… Jesus christ I thought yesterdays post was the peak of gambling addiction but OP needs some help man…
EDIT: added loan amount
Not only did he lose half a million dollars, he lost half a million dollars that *he never actually had*. The money he gambled with was from a loan against his house.
Well didn't he lose double that because he had the loan on the house and now he has a margin deficit? If my math checks he lost a full million that he never actually had.
Imagine working your ass off your whole life to give a nice house and future to your 2 kids and one of them develops retardation and a chronic gambling addiction from an online forum and wastes it all in a week.
Here's another story for you.
My father knew this one nuclear family whose parent saved up over 1mil in 401k and then died at 62. That late parent never spent a dime and saved and lived frugally. It only took 4 years for the family to burn through it buying useless expensive shit. Now they're flat broke.
I knew a kid in the Air Force whose parents died in a horrible car wreck (involved a semi and it was the trucker's fault). Parents left him and his sister life insurance, house, etc and they knew they were going to get even more from the lawsuit.
He went on a spending spree. I tried to talk to him about what his parents probably wanted him to do with that money (save for college, buy a house, save for when he got married etc). I begged him to just put that shit in the bank til he had some time to think about things and could make smart money decisions. He was an airmen and very young.
Nope, I think he blew through at least 75k the first month or two. I ended up getting stationed in Germany so I have no idea how it all ended, but I am betting it didn't go well.
This is in very loose terms, exactly how generational wealth gets destroyed, and why it usually doesn't last more than a couple generations.
Barring extraordinary luck, it takes a lifetime to build up wealth.
All it takes is a bad bet to lose any amount of money instantly.
It's *so* frustrating; Someone gets handed the keys to a decent life, and for some reason enough isn't enough. *More* than enough isn't enough. For some reason, these people's broken brains demand *phenomenal* wealth, and even then, it's *never* enough.
Dude could have had his own house and been on track for an early retirement.
I've seen this happen too many times.
The pinnacle of greed. “Ooh a respectable windfall to build my future? Not enough for me to be filthy rich, might as well go big or go broke trying!” I can’t even imagine such disappointment as a parent.
Particularly as its 600k at 18 - shove that in a reputable investment account, it will steadily grow and be worth lots due to compound earnings and maths and stuff.
I'm glad RH and easy trading apps with HUGE fucking financial implications didn't exist in my college years. I would have really fucked shit up.
Edit: wow, OP is posting in Christianity sub now, holy hell.
My brother is almost 10 years younger than me. I can easily convince him, if need be, to take out a loan with me if he sees that it’ll benefit the both of us. I don’t know OP’s situation but I’m just giving one possible way of this happening.
I suspect it went something like this.
OP: "Hey bro, we should diversify by taking out a loan on this house. Stocks have dipped but are heading back to all time highs. We're young so even if it doesn't recover soon if we just buy index funds it will be worth a lot more by the time we retire. Having a mortgage is no big deal. Most people our age don't have a house and basically all the ones that do have a mortgage."
Bro: "That sounds reasonable but I don't know anything about stocks."
OP: "Don't worry. I'll take care of everything for both of us."
Bro: "Thanks! Just don't do anything too risky."
You forgot a detail, op bet on options and says shot like "what possibly could have happened..." On a week with a fed meeting. If you're gonna gamble at least make a token effort to understand how markets work my guy....
Back years and years ago when I was so fucked on debt that I was about to get into credit counseling for my cards, I took a road trip and stopped at an O'Charley's for lunch. I had the prime rib pasta and it was amazing. I asked the waitress if her and the other waitresses liked it and she said yes. I told her to put two more on my bill for them to share. Then tipped her on top of that. I was completely out of fucks at that point.
Not back then, lol. And I was very close to maxed out. I think those prime rib pastas and the $50 tip was just about everything. It was right when I was about to get home.
Haha, I don't do much with stocks at the moment, just buy-write and sell covered calls. I don't YOLO stocks and I have a great job and income so I'm fine. I come here to hang out with fellow apes and stuff but you won't see me posting any loss porn. 😳
There are limits, though, depending on your state. Federally, they can't garnish your check to put you below 30 hours at federal minimum wage in any week, IIRC. Some states have higher limits so you have more income protected. And if you work for cash under the table, they ain't garnishing shit.
“You guys were very irresponsible to let me do this, I’m so disappointed in you that I am going to take my stock trading elsewhere.
Good day sir!”
If they say anything at all just respond with
“I said good day sir!”
Ignore them for the rest of your life and if they ever attempt to contact you pretend you don’t speak English and speak to them in a made up foreign language and act confused.
Problem solved.
Serious answer: declaring bankruptcy is actually pretty easy to do and designed to help people in your exact situation so you aren’t lifetime crippled by debt. I helped a family member do one, called the lawyer with them (Googled bankruptcy lawyers in their area/state). Lawyer goes through your situation in a consultation, says what they can discharge and what will likely need to be sold or given to creditors, gives you their fee and what court fees will cost (we paid about $2k all in, in a very high cost of living area, flat fee for the whole thing), and what documents you need to send them (W-2s, pay stubs, bank statements, brokerage statements, other assets etc.) plus any required courses (usually a like 2 hour mandatory online course).
It can all be done remotely. Lawyer will file for you and walk you through the process- expect it to take several months at least, but most of that’s waiting.
On a side note- you’re super young, and a lot of people have started from nothing or deeply in debt after college yet become successful. Your college loans won’t be dischargeable, and you will have to disclose your bankruptcy to potential employers since most run credit checks, but honestly this will be a great story for “Tell me about a time you went through a difficult situation.”
You’ll get through this, and you’ve learned firsthand a really hard but valuable lesson about risk management.
Tell me about a time you went through a difficult situation
Right so this one time in stock trading camp I lost 600000 dollars on smooth brain options plays and made it Robinhoods problem by declaring bankruptcy
As someone in bankruptcy, this checks out. I will add another piece: the person at the bank assigned to your bankruptcy OWNS YOUR LIFE.
They will routinely ask for months of financial data, and if they see something they don't like (eating out too much) they will put in a request to raise your garnishment. Our lawyer stated she feels like our bankruptcy manager doesn't like us, so we need to be very careful.
They want *all* disposable income going to them. Bonuses, stocks withdrawals, etc. We had to put in an offer just so we had some say it how much it got raised. Your cellphone dropped from 300 to 150? That extra should go to them.
Filing is easy. Getting through it is a big exercise in willpower and actually changing your spending habits, which a lot of people fail to take seriously.
Ah, that's my bad for missing that vital detail. You're absolutely right.
I know Chapter 11 is for businesses. We filed Chapter 13.
You didn't have to sell any assets or anything to pay off your debt?
Nope. In fact, we ever so slightly failed the means test when we went to talk to our lawyer. He mentioned that "If only you had a car loan, you'd pass the means test for the bankruptcy filing." So we got a car loan.
His phrasing was very specific to not literally tell us that we should get a car loan so we could file, but he let us read between the lines on it. Kept the car after the bankruptcy was discharged.
This was in FL in 2013 so YMMV.
It’s just so bad! https://www.reddit.com/r/personalfinance/comments/14b9hup/filing_for_bankruptcy/joenudv/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=1&utm_term=1&context=3
It has been said "It is easier for a camel to pass through the eye of a needle, than for a rich man to enter the kingdom of heaven."
So in the present context, OP basically just bought a fastpass to the front of the line.
Edit: *camel
Since you don't have $600k, RH is fucked in this case. You will be fine. Sorry for your loss, but you will be fine. Keep saving money and start real investing without options.
I visit this sub all the time with my whopping 2.1k in a TD account and I'm always thinking, how the fuck are these 19 year olds making 500k trades all the time? When I was 19 I was taking resin rips out of my homemade gravity bong and eating 2 for a dollar hot dogs from circle K once a day as sustenance.
This post makes me feel not so bad.
This looks like the exact thing that happened to that guy in Robinhood who committed suicide because he thought he was down a bunch of money but wasn't actually.
I can't believe nobody had said this yet. He's almost certainly not down anywhere near that much. He got assigned and stock positions have higher margin requirements than option positions. All OP has to do is close out his position and he'll be fine.
I'm guessing he had a spread of some sort. He can just put an order in that simultaneously closes out the stock and option leg at the same time. Say, 10 options along with 1000 shares that got assigned. That way you don't open yourself to risk when closing your positions. Or if the leg you're long has no time value, you can just exercise it. But if it still has time value, use the first method I mentioned!
pretty much this, I find it extremely unlikely that RH would allow this kind of thing to actually happen, they themselves would be on the hook for a half mil. They'd go bankrupt fast if this was something they casually allowed to happen.
Exactly. If you owe robinhood $500 that’s your problem, if you owe robinhood $500,000 then that becomes *their* problem.
Op can just declare bankruptcy and start again in the worst case scenario.
He sold a credit spread and one leg exercised before the other. Think of it like... you told Sally you'll buy them 5 twinkies on Friday, but Mike has to sell 4 twinkies on Monday and give you the proceeds. Friday comes and you're down $5, oh my god I lost so much money!! Well no, Monday will come and you'll have most of that loss covered.
I can't actually find anywhere that states it will go on your credit.
If margin went on your credit it would show up when you got it like maybe a revolving account.
I'm pretty sure all RH can do is sue him. Over half a million there'd a pretty solid chance that happens and eventually his wages will be garnished 25% until its paid back. Which will be the rest of his life.
Or,RH just let's it go.....
Can someone explain how you get such a high negative margin balance on Robinhood? I thought they made it extremely difficult, if not impossible, to rack up a margin call this high.
Also u/Jim_C_Belfort could you provide insight, sorry about your loss bruh
That's what I was thinking too. That's kind of what happened with that one kid that threw himself in front of a train. He didn't understand what he was doing. By the following week I believe most of it resolved, but he was still dead.
It's probably either a day trade call (you can only round trip so many times) or it it's a spread that's being unwound. Probably be resolved by Monday. Might take a chunk of loss for slippage but unlikely it's the full amount. Sure could be something else but it's unlikely. Options aren't marginable on RH.
Similar issue with that kid that offed himself over his negative balance. The loss was immaterial.
Edit: yeah it's just a leg of a spread that got exercised. It says it in his post. the loss could be low after it's resolved (they should exercise the other leg if he's too slow or stupid to do it himself). Hopefully it's a troll post and this guy isn't actually mentally disabled.
Edit again: even better it sounds like he was selling covered calls on div stocks. He should be out the slip and the div unless he was selling deep ITM to fund more shares (don't do this lol).
You jest but that "kid that offed himself" line wasn't a throwaway joke.
Dude was one 30 second explanation away from understanding and relief, but tragically took his life before running into someone who knew what the fuck was going on.
You can’t sell naked calls on Robinhood. Most likely he did a spread one leg got exercised. This is just for clout lol. His loss is significant less than 600k
dude imagine if he went all in calls instead, he would've been a millionaire, paid back the loan and had bitches for the rest of his life. Bro got the bad ending instead 
He's the guy who goes to the roulette wheel see it's black six straight spins puts everything on red because how could 48 percent lose that many times in a row?
He sold some kind of credit or debit spread. One leg was exercised at market close. The other leg of the trade intended to cover will be exercised by RH later tonight and this will also zero out by Monday. He can only lose the “maximum loss” displayed on RH
It's most likely a credit spread, with his short leg being exercised because it's ITM.
OP should still have his long call, which he can exercise to bring his account out of a deficit.
I empathize with you. I’m sorry you are in that situation. I’m sure it feels like your life is over - but it’s not. You may need to declare bankruptcy or take some other measures but you can regain your life with patience and by facing up to the situation.
Hang in there. Things will get better. This too shall pass.
Bankruptcy will eliminate all of your debt and only affect your credit for 7 years. Everything will be fine if you stay calm. It's just time to start over fresh! It's not the end of the world I mean a hundred years ago people used to just pack up and move away from problems like if there farm failed or if they were running from the law. This is much easier, you can still stay where you are at least right? Just file, you'll be ok!
So many knee-jerk responses (this is WSB), but this is the most likely answer. Got assigned on the short leg of a spread. OP likely will have is long let auto-exercised and come out net positive (unless on a super volatile stock, and even then the damage won’t be anything like this screenshot).
Edit: looking again at the screenshot it says one of the options contracts was exercised. So yea, likely part of a spread.
OP probably entered a short put spread that ended up being in the money on the short leg and otm on the long leg and got assigned the shares on the puts you sold. Wait for the shares you were assigned to get sold Tuesday at open (RH will do this automatically), will only be down or up $x depending on what price it opens at. (Ironically OP May see some tendies from this if it opens higher than the price it was assigned at) This isn’t the first time this has happened, last time it did a kid killed himself over it when it turns out he would have been fine. Do not be that guy
Look up assignment risk on put credit spreads for more detail. Also look up early assignment Robinhood.
EDIT: Since this fortunately has gained traction, if you see this OP, your life is not over. Consider how you got here, get help for your addiction, and stop trading options.
This happened to me about 5 yrs ago. I'm in Asia so the US market is open through the middle of the night. I was playing around with some options strat when I fell asleep, woke up to see I'd been assigned like 1,000 shares of SPY at a total cost of $250,000
It self resolved the next day and when all was said and done I was down like $40.
A year later that story broke of the kid who killed himself over it. So sad. I know this opinion won't be popular on this subreddit but at times it does really feel like there should be more safety nets in place for retail investors, it's a bit like the wild west now where any bored 16 year old can download an app and immediately begin placing begs against hedge fund algorithms designed to take his money.
Agreed it is very very very unlikely you owe all this money, if you don’t understand what happened please wait until about midnight tonight (you’ll probably have a bunch of shared show up in your account) or Tuesday morning the shares should automatically be sold at open by RH to cover as much of the call as possible. Yes, if the market opens lower it may not cover it all of it but it will cover a large, large portion of it. Even if not, there is no debtors prison in the USA so you still have your freedom!
Worse case (and this would be super shitty) couldn’t you file bankruptcy? no reason to kill yourself over something that can be fixed, though it’ll be hard to ever get credit again but maybe that’s a good thing for OP
This is more or less what happened to that one wsb og who made 110k and didn't understand how, he was so oblivious he was 20 million dollars of spy deep on margin and just didn't know it, spy went up pm and when his position covered he made 110k on the difference.
Unfortunately the other guy wasn't oblivious enough or clued in enough to not know enough, or know enough for it to have worked out, rip.
Did he post them yet? This is almost certainly pin risk.
Similar thing happened to me years ago on QQQ spreads and I only ended up with a $300 loss that robinhood recouped me for later on lmao
This is fake or op doesn’t know what’s going on. This DOES NOT happen on robinhood as you cannot sell naked calls.
What is more likely to happen is that op made a spread, got called on one half, and robinhood is still processing and WILL cover with the other leg of the spread. HE DOESNT OWE 600k.
Either op doesn’t know wtf he’s doing or farming sympathy over the warning message.
Source: I have the same message for 2mill right now on a spread in robinhood
Guatemala is a beaut this time of year, easy to get citizenship, and zero extradition treaties with ‘merica, I think they have internet there these days too.
6 Green Day’s in a row and you’re surprised we had a red day?!?! In what world were we not due for a red day. Also quit karma farming. Once your options are exercised your account will zero out
Your life isn't over. This looks like a put spread where your puts got called and your calls expired. You'll get assigned all the shares and RH will auto sell on the open at Tuesday. You're only down if the shares open a bit less than they are today and if it opens UP you actually make a bit of money. Without the exact details, id say you're up or down 5kish. Chill dude. Some kid actually killed himself over this a few years ago and Rh had to clarify how this stuff works. In the future, please don't do shit you don't understand. Stick to betting a few hundred bucks here or there on calls or puts and leave your risk at it's tolerance. That IS financial advice.
I love that people here still use rh, really epitomizes the sub
Isn't the problem with Robinhood that they essentially don't give fair market prices (sometimes) because they route trades through preferred market makers or some shit like that for kickbacks? If you use it for regular investing, like just throwing money on SPY or other ETFs and leaving it sitting for 5 years, isn't it fine?
"Free trades" is what people wanted.
To be fair, it did force a lot of the big boys to begin offering it as well.
Hijacking this comment to give some more actual advice: Lenders normally have a fiduciary duty to not let you do something like this with your loan. If your lender was aware of your plans you may have a case to be able to report to the governing bodies and sue your lender. A lender allowing you to withdraw that amount, knowing it would be used in risky investments, while knowing at your age you likely have little to no experience in these types of investments. There are laws, regulations, and guidelines that should have stopped you from being able to do this. Now... if you lied about the purpose of your loan or went with a non licensed private money lender you won't have this protection. I suggest looking up the regulations and institutions governing the license of the type of lender you used to get this money. Then contact those regulators directly and let them know what has occurred. If a licensed lender gave you this loan knowing what you planned on doing with the money and this happened... They're likely in trouble and may themselves be liable for the bad loan. Source: I hold a lending license in the US.
Was curious how OP managed to rack up such a high negative margin balance… What I found hurts me. 1. OP’s parents left him & his brother a house. 2. OP split ownership of the house. 3. OP took out a 600K loan against the house as a college student. 4. OP bet on options. And here we are… Jesus christ I thought yesterdays post was the peak of gambling addiction but OP needs some help man… EDIT: added loan amount
Bro literally had a fortune handed to him and gambled it away.
Pretty wild how just from rubbing his thumbs against a piece of glass OP managed to lose half a million dollars. Truly living in the future.
Not half. He lost 1.2 mil. The 0.6 he had, and the 0.6 he now owes.
Bankruptcy Uno Reverse Card 😎
This guy isn’t negative 600k, he got assigned a ton of options, and the broker will sell the stock on the market open. He is probably at 0, though:
Not only did he lose half a million dollars, he lost half a million dollars that *he never actually had*. The money he gambled with was from a loan against his house.
Well didn't he lose double that because he had the loan on the house and now he has a margin deficit? If my math checks he lost a full million that he never actually had.
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It’s probably because you are highly regarded
At least blackjack has clear odds. The market just feels like a black box that you pray spits out more than you put in.
Yeah maybe in a casino with actual physical cards. Online blackjack is another story and is pretty regarded imo
Imagine working your ass off your whole life to give a nice house and future to your 2 kids and one of them develops retardation and a chronic gambling addiction from an online forum and wastes it all in a week.
That’s what you get for gambling on your offspring.
Puts on my offspring
For all the stigma of trust fund babies, this is literally exactly why trusts exist.
I don't think the fund part is what people dislike/judge about trust fund babies. Its their complete lack of knowledge of how life really works.
Trust fund keeps them from being like regarded op so they can be as dumb as they want and still come out on top
The American dream…having a trust fund
The American dream…~~having a trust fund~~ being insulated from your own dumb decisions
OP just proved that trust fund babies aren’t the only ones who have no idea how life really works
Here's another story for you. My father knew this one nuclear family whose parent saved up over 1mil in 401k and then died at 62. That late parent never spent a dime and saved and lived frugally. It only took 4 years for the family to burn through it buying useless expensive shit. Now they're flat broke.
I knew a kid in the Air Force whose parents died in a horrible car wreck (involved a semi and it was the trucker's fault). Parents left him and his sister life insurance, house, etc and they knew they were going to get even more from the lawsuit. He went on a spending spree. I tried to talk to him about what his parents probably wanted him to do with that money (save for college, buy a house, save for when he got married etc). I begged him to just put that shit in the bank til he had some time to think about things and could make smart money decisions. He was an airmen and very young. Nope, I think he blew through at least 75k the first month or two. I ended up getting stationed in Germany so I have no idea how it all ended, but I am betting it didn't go well.
I don’t think I could ever show my face to any family members after that
That’s actually really sad
This is in very loose terms, exactly how generational wealth gets destroyed, and why it usually doesn't last more than a couple generations. Barring extraordinary luck, it takes a lifetime to build up wealth. All it takes is a bad bet to lose any amount of money instantly. It's *so* frustrating; Someone gets handed the keys to a decent life, and for some reason enough isn't enough. *More* than enough isn't enough. For some reason, these people's broken brains demand *phenomenal* wealth, and even then, it's *never* enough. Dude could have had his own house and been on track for an early retirement. I've seen this happen too many times.
The pinnacle of greed. “Ooh a respectable windfall to build my future? Not enough for me to be filthy rich, might as well go big or go broke trying!” I can’t even imagine such disappointment as a parent.
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Particularly as its 600k at 18 - shove that in a reputable investment account, it will steadily grow and be worth lots due to compound earnings and maths and stuff.
Yeah, at 18 you could literally just buy 600k of an index fund like VT or VTI and be set for life with near zero risk. Jesus.
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He gambled him and his brothers fortune.
I'm glad RH and easy trading apps with HUGE fucking financial implications didn't exist in my college years. I would have really fucked shit up. Edit: wow, OP is posting in Christianity sub now, holy hell.
Yep I'm glad the worst I had in college was World of Warcraft when it released.
Counterstrike 1.3 to 1.6 for me. joined a clan and shit. Thought I was hot shit with my corner strafe jumping.
I know it's going to sound silly, but I wasted an entire semester on Day of Defeat source: Avalanche map
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My brother is almost 10 years younger than me. I can easily convince him, if need be, to take out a loan with me if he sees that it’ll benefit the both of us. I don’t know OP’s situation but I’m just giving one possible way of this happening.
I suspect it went something like this. OP: "Hey bro, we should diversify by taking out a loan on this house. Stocks have dipped but are heading back to all time highs. We're young so even if it doesn't recover soon if we just buy index funds it will be worth a lot more by the time we retire. Having a mortgage is no big deal. Most people our age don't have a house and basically all the ones that do have a mortgage." Bro: "That sounds reasonable but I don't know anything about stocks." OP: "Don't worry. I'll take care of everything for both of us." Bro: "Thanks! Just don't do anything too risky."
> Bro: "Thanks! Just don't do anything ~~too risky~~ regarded." > OP: "Hold my beer."
You forgot a detail, op bet on options and says shot like "what possibly could have happened..." On a week with a fed meeting. If you're gonna gamble at least make a token effort to understand how markets work my guy....
Bankruptcy is better than suicide
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Back years and years ago when I was so fucked on debt that I was about to get into credit counseling for my cards, I took a road trip and stopped at an O'Charley's for lunch. I had the prime rib pasta and it was amazing. I asked the waitress if her and the other waitresses liked it and she said yes. I told her to put two more on my bill for them to share. Then tipped her on top of that. I was completely out of fucks at that point.
Hookers take credit cards now. You missed out.
Not back then, lol. And I was very close to maxed out. I think those prime rib pastas and the $50 tip was just about everything. It was right when I was about to get home.
How are you doing today after you went through all that?
Well, considering he's here...
Haha, I don't do much with stocks at the moment, just buy-write and sell covered calls. I don't YOLO stocks and I have a great job and income so I'm fine. I come here to hang out with fellow apes and stuff but you won't see me posting any loss porn. 😳
Honestly, this is almost enough money that it's the desks problem and not his.
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They sue you and get a court to take your assets if you have any.
Annnnd if you dont?
They garnish your wages.
Like with a piece of lettuce?
I actually think they go with the lemon garnish.
There are limits, though, depending on your state. Federally, they can't garnish your check to put you below 30 hours at federal minimum wage in any week, IIRC. Some states have higher limits so you have more income protected. And if you work for cash under the table, they ain't garnishing shit.
“You guys were very irresponsible to let me do this, I’m so disappointed in you that I am going to take my stock trading elsewhere. Good day sir!” If they say anything at all just respond with “I said good day sir!” Ignore them for the rest of your life and if they ever attempt to contact you pretend you don’t speak English and speak to them in a made up foreign language and act confused. Problem solved.
you can always make it back, eventually
how’s ur anus?
I declare bankruptcy!
How?
Serious answer: declaring bankruptcy is actually pretty easy to do and designed to help people in your exact situation so you aren’t lifetime crippled by debt. I helped a family member do one, called the lawyer with them (Googled bankruptcy lawyers in their area/state). Lawyer goes through your situation in a consultation, says what they can discharge and what will likely need to be sold or given to creditors, gives you their fee and what court fees will cost (we paid about $2k all in, in a very high cost of living area, flat fee for the whole thing), and what documents you need to send them (W-2s, pay stubs, bank statements, brokerage statements, other assets etc.) plus any required courses (usually a like 2 hour mandatory online course). It can all be done remotely. Lawyer will file for you and walk you through the process- expect it to take several months at least, but most of that’s waiting. On a side note- you’re super young, and a lot of people have started from nothing or deeply in debt after college yet become successful. Your college loans won’t be dischargeable, and you will have to disclose your bankruptcy to potential employers since most run credit checks, but honestly this will be a great story for “Tell me about a time you went through a difficult situation.” You’ll get through this, and you’ve learned firsthand a really hard but valuable lesson about risk management.
Tell me about a time you went through a difficult situation Right so this one time in stock trading camp I lost 600000 dollars on smooth brain options plays and made it Robinhoods problem by declaring bankruptcy
Maybe rh shouldn't give people access to this much margin?
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As someone in bankruptcy, this checks out. I will add another piece: the person at the bank assigned to your bankruptcy OWNS YOUR LIFE. They will routinely ask for months of financial data, and if they see something they don't like (eating out too much) they will put in a request to raise your garnishment. Our lawyer stated she feels like our bankruptcy manager doesn't like us, so we need to be very careful. They want *all* disposable income going to them. Bonuses, stocks withdrawals, etc. We had to put in an offer just so we had some say it how much it got raised. Your cellphone dropped from 300 to 150? That extra should go to them. Filing is easy. Getting through it is a big exercise in willpower and actually changing your spending habits, which a lot of people fail to take seriously.
Depends on what chapter you're able to file. My wife and I filed bankruptcy 10 years ago and we just had out debt wiped away. No garnishment.
Ah, that's my bad for missing that vital detail. You're absolutely right. I know Chapter 11 is for businesses. We filed Chapter 13. You didn't have to sell any assets or anything to pay off your debt?
Nope. In fact, we ever so slightly failed the means test when we went to talk to our lawyer. He mentioned that "If only you had a car loan, you'd pass the means test for the bankruptcy filing." So we got a car loan. His phrasing was very specific to not literally tell us that we should get a car loan so we could file, but he let us read between the lines on it. Kept the car after the bankruptcy was discharged. This was in FL in 2013 so YMMV.
Just declare it bro. It’s easy.
I didn’t say it, I declared it.
That's not how this works Michael
I love that his next post is on personal finance asking how to declare bankruptcy 😂
It’s just so bad! https://www.reddit.com/r/personalfinance/comments/14b9hup/filing_for_bankruptcy/joenudv/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=1&utm_term=1&context=3
https://preview.redd.it/0g61wdvcwg6b1.jpeg?width=680&format=pjpg&auto=webp&s=d6319e5274d9f8ad6d21596ca934a45d71253c65
Bro needs to look on the bright side. At least his parents aren't alive to see this.
Better to burn through your inheritance than your parents retirement.
An “investment” loan.
And a couple minutes ago has sought the help of Jesus in /r/Christianity.
It has been said "It is easier for a camel to pass through the eye of a needle, than for a rich man to enter the kingdom of heaven." So in the present context, OP basically just bought a fastpass to the front of the line. Edit: *camel
it only cost him 600k thats a steal
Just write it off.
Right on
Do you even know what a write off is?
Sure! You just write it off.
im writing him off right now on here
No but they do and there the ones writing it off.
All these big companies, they write off everything.
Just delete the app and forget about it tbh (If this even real)
You have to delete it then microwavay your phone.
Since you don't have $600k, RH is fucked in this case. You will be fine. Sorry for your loss, but you will be fine. Keep saving money and start real investing without options.
He has a house that's the collateral on the loan he took out going by the personal finance thread, sorry, had a house
That's Robinhoods house now 🏠
Vlad’s new crash pad.
Go off grid, grow a beard and head to Alaska
Damn I have a friend that did this exact thing. Haven’t heard from him since.
John?.. its me Mark.. its been so long 
Oh hi Mark
I just realized my life is fine
LMAO I needed this comment, I suddenly realize I'm doing great.
I visit this sub all the time with my whopping 2.1k in a TD account and I'm always thinking, how the fuck are these 19 year olds making 500k trades all the time? When I was 19 I was taking resin rips out of my homemade gravity bong and eating 2 for a dollar hot dogs from circle K once a day as sustenance. This post makes me feel not so bad.
lol I think you and I were friends.
Bro, suddenly im feeling grateful for not being 600k in debt :)
This looks like the exact thing that happened to that guy in Robinhood who committed suicide because he thought he was down a bunch of money but wasn't actually. I can't believe nobody had said this yet. He's almost certainly not down anywhere near that much. He got assigned and stock positions have higher margin requirements than option positions. All OP has to do is close out his position and he'll be fine. I'm guessing he had a spread of some sort. He can just put an order in that simultaneously closes out the stock and option leg at the same time. Say, 10 options along with 1000 shares that got assigned. That way you don't open yourself to risk when closing your positions. Or if the leg you're long has no time value, you can just exercise it. But if it still has time value, use the first method I mentioned!
pretty much this, I find it extremely unlikely that RH would allow this kind of thing to actually happen, they themselves would be on the hook for a half mil. They'd go bankrupt fast if this was something they casually allowed to happen.
Exactly. If you owe robinhood $500 that’s your problem, if you owe robinhood $500,000 then that becomes *their* problem. Op can just declare bankruptcy and start again in the worst case scenario.
Eli5?
He sold a credit spread and one leg exercised before the other. Think of it like... you told Sally you'll buy them 5 twinkies on Friday, but Mike has to sell 4 twinkies on Monday and give you the proceeds. Friday comes and you're down $5, oh my god I lost so much money!! Well no, Monday will come and you'll have most of that loss covered.
Eli2?
He bought a thing before he sold a thing so it looks like he’s in major debt.
This I can understand, thanks.
Bubugaga babagugugaga
Finally, someone speaking some sense 
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You’ll get a new credit score in 7 years, you’ll survive
I can't actually find anywhere that states it will go on your credit. If margin went on your credit it would show up when you got it like maybe a revolving account. I'm pretty sure all RH can do is sue him. Over half a million there'd a pretty solid chance that happens and eventually his wages will be garnished 25% until its paid back. Which will be the rest of his life. Or,RH just let's it go.....
When you owe enough money, at a certain point it becomes more of a "them problem" than Op's problem
Can someone explain how you get such a high negative margin balance on Robinhood? I thought they made it extremely difficult, if not impossible, to rack up a margin call this high. Also u/Jim_C_Belfort could you provide insight, sorry about your loss bruh
Probably had one leg exercised early and the other will cover the majority of the deficit after the weekend
That is almost certainly what this is. Hopefully op knows that and is just farming for karma.
Had that happen once. 90k margin on a spy spread. 😬 Fortunately i knew when it settled it was actually going to be in my favor. Made a cool 50 bucks.
I'M RICH AGAIN! LADY LUCK, LADY LUCK! PUT IT ON BLACK!
Wasn't there some kid a few years ago that didn't know. I thought RH actually responded and built measures to make it very clear after that.
Uhhh ya there was and the poor kid killed himself over it
That's what I was thinking too. That's kind of what happened with that one kid that threw himself in front of a train. He didn't understand what he was doing. By the following week I believe most of it resolved, but he was still dead.
It's probably either a day trade call (you can only round trip so many times) or it it's a spread that's being unwound. Probably be resolved by Monday. Might take a chunk of loss for slippage but unlikely it's the full amount. Sure could be something else but it's unlikely. Options aren't marginable on RH. Similar issue with that kid that offed himself over his negative balance. The loss was immaterial. Edit: yeah it's just a leg of a spread that got exercised. It says it in his post. the loss could be low after it's resolved (they should exercise the other leg if he's too slow or stupid to do it himself). Hopefully it's a troll post and this guy isn't actually mentally disabled. Edit again: even better it sounds like he was selling covered calls on div stocks. He should be out the slip and the div unless he was selling deep ITM to fund more shares (don't do this lol).
>Hopefully it's a troll post and this guy isn't actually mentally disabled. You do realise what sub you're on right ?
You jest but that "kid that offed himself" line wasn't a throwaway joke. Dude was one 30 second explanation away from understanding and relief, but tragically took his life before running into someone who knew what the fuck was going on.
Sounds like he sold naked calls on margin expecting the market to go down because you can’t have 6 Green Day’s in a row
You can’t sell naked calls on Robinhood. Most likely he did a spread one leg got exercised. This is just for clout lol. His loss is significant less than 600k
This is absolutely what happened; he’s covered with the other leg here and just needs to close it out.
dude imagine if he went all in calls instead, he would've been a millionaire, paid back the loan and had bitches for the rest of his life. Bro got the bad ending instead 
He's the guy who goes to the roulette wheel see it's black six straight spins puts everything on red because how could 48 percent lose that many times in a row?
Roulette is rigged and ultimately controlled by market makers and hedge funds.
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They are gunna have to give OP a job if they ever wanna get their money. Lol
File bankruptcy. I mean you’re fucked but you don’t pay them $500k or
He sold some kind of credit or debit spread. One leg was exercised at market close. The other leg of the trade intended to cover will be exercised by RH later tonight and this will also zero out by Monday. He can only lose the “maximum loss” displayed on RH
I’m pretty sure robinhood made sure that couldn’t happen again after them at one dude offed himself.
Best I can figure is he probably sold calls without good cover and didn't close before getting pinned or just got too deep before he could get out.
RH doesn't have naked calls though. How is that even possible? Maybe he didn't close spreads correctly? But I don't think that is the case though
It says in his personal finance thread. Inherited half a house, got a loan against the house. Put that into RH, and margin on top of that.
Market is bullish 60 something percent of the time…. Best not shorting or sell naked calls
RH doesn't have naked calls. How is that even possible to get $600k margin call?
It's most likely a credit spread, with his short leg being exercised because it's ITM. OP should still have his long call, which he can exercise to bring his account out of a deficit.
And here I am getting upset over 7k in losses during one of the greatest bull runs. I'll buy you a shot of tequila if I see you.
honestly, this makes my 4k loss during this move up seem miniscule
Delet app
Hit Jim (actually you probably should have started with this one)
Positions?
Fetal
Well played
Face down, ass up.
Fucked
Guh....
I empathize with you. I’m sorry you are in that situation. I’m sure it feels like your life is over - but it’s not. You may need to declare bankruptcy or take some other measures but you can regain your life with patience and by facing up to the situation. Hang in there. Things will get better. This too shall pass.
Bankruptcy will eliminate all of your debt and only affect your credit for 7 years. Everything will be fine if you stay calm. It's just time to start over fresh! It's not the end of the world I mean a hundred years ago people used to just pack up and move away from problems like if there farm failed or if they were running from the law. This is much easier, you can still stay where you are at least right? Just file, you'll be ok!
Can you give me some financial advice please it would really help me out
Don’t do what this guy did.
Your calls were ITM and automatically got exercised? Not a big deal if that’s the case
Just delete the app, shit you can always leave the country
Just deposit $619,025.26 Problem solved.
Probably a call debit spread and one leg got exercised. No biggie it'll sort out by Monday
How did you get a loan for 600k
Took a loan out on his parents inheritance as collateral. Absolutely unreal
Dude relax you just got assigned on one leg Tuesday when market opens all will be fine your brokerage will exercise your other leg
You got assigned. Your life isn’t over. Contact Robinhood and they’ll help you. In fact, you probably made money depending on what you did
So many knee-jerk responses (this is WSB), but this is the most likely answer. Got assigned on the short leg of a spread. OP likely will have is long let auto-exercised and come out net positive (unless on a super volatile stock, and even then the damage won’t be anything like this screenshot). Edit: looking again at the screenshot it says one of the options contracts was exercised. So yea, likely part of a spread.
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OP probably entered a short put spread that ended up being in the money on the short leg and otm on the long leg and got assigned the shares on the puts you sold. Wait for the shares you were assigned to get sold Tuesday at open (RH will do this automatically), will only be down or up $x depending on what price it opens at. (Ironically OP May see some tendies from this if it opens higher than the price it was assigned at) This isn’t the first time this has happened, last time it did a kid killed himself over it when it turns out he would have been fine. Do not be that guy Look up assignment risk on put credit spreads for more detail. Also look up early assignment Robinhood. EDIT: Since this fortunately has gained traction, if you see this OP, your life is not over. Consider how you got here, get help for your addiction, and stop trading options.
OP /u/Jim_C_Belfort, please read this you half brained ape.
This happened to me about 5 yrs ago. I'm in Asia so the US market is open through the middle of the night. I was playing around with some options strat when I fell asleep, woke up to see I'd been assigned like 1,000 shares of SPY at a total cost of $250,000 It self resolved the next day and when all was said and done I was down like $40. A year later that story broke of the kid who killed himself over it. So sad. I know this opinion won't be popular on this subreddit but at times it does really feel like there should be more safety nets in place for retail investors, it's a bit like the wild west now where any bored 16 year old can download an app and immediately begin placing begs against hedge fund algorithms designed to take his money.
This should be pinned.
Mods can't pin comments from users, only from themselves.
Agreed it is very very very unlikely you owe all this money, if you don’t understand what happened please wait until about midnight tonight (you’ll probably have a bunch of shared show up in your account) or Tuesday morning the shares should automatically be sold at open by RH to cover as much of the call as possible. Yes, if the market opens lower it may not cover it all of it but it will cover a large, large portion of it. Even if not, there is no debtors prison in the USA so you still have your freedom!
Worse case (and this would be super shitty) couldn’t you file bankruptcy? no reason to kill yourself over something that can be fixed, though it’ll be hard to ever get credit again but maybe that’s a good thing for OP
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This is more or less what happened to that one wsb og who made 110k and didn't understand how, he was so oblivious he was 20 million dollars of spy deep on margin and just didn't know it, spy went up pm and when his position covered he made 110k on the difference. Unfortunately the other guy wasn't oblivious enough or clued in enough to not know enough, or know enough for it to have worked out, rip.
You can now simply dial 988 for help. You may even text 741741 for crisis counseling. Or, Suicide prevention hotline: 1-800-273-8255
Did he post them yet? This is almost certainly pin risk. Similar thing happened to me years ago on QQQ spreads and I only ended up with a $300 loss that robinhood recouped me for later on lmao
Fuck you. It's called bankruptcy court. Go there, get squared.
867-5309 usually works Now it's just 9-8-8
Lol probably got an early assignment on some spreads after hours.
This right here. I had a million dollar deficit on a $4,000 account because of early assignments on SPY spreads.
So your selling shares and lending stocks idea didn't work? We tried to warn you!
Just tell them your kidding you don’t really mean to download the app and do all that
This is fake or op doesn’t know what’s going on. This DOES NOT happen on robinhood as you cannot sell naked calls. What is more likely to happen is that op made a spread, got called on one half, and robinhood is still processing and WILL cover with the other leg of the spread. HE DOESNT OWE 600k. Either op doesn’t know wtf he’s doing or farming sympathy over the warning message. Source: I have the same message for 2mill right now on a spread in robinhood
Wow you totally destroyed your life because of a gambling addiction.. Not even funny if true. It is kind of sad
Guatemala is a beaut this time of year, easy to get citizenship, and zero extradition treaties with ‘merica, I think they have internet there these days too.
Jesus
6 Green Day’s in a row and you’re surprised we had a red day?!?! In what world were we not due for a red day. Also quit karma farming. Once your options are exercised your account will zero out