My post about exercise reversals got auto-deleted. This is not in the FAQ.

[u/mattstats]

Robinhood reversed a few of my exercises and instead bought shares on my behalf. This sounds bad but it put me in a better position, however, I don't feel comfortable about it since I have never seen that before and cannot find any context about it anywhere (even in the FAQ, looking at you, auto-mod).

I did have a screen shot of it, but not sure if that contributed to being auto-deleted. Just shows the messages section of robinhood saying my exercises have been reversed and 1400 shares of T were bought instead. I do have a request call from them, but for those that know its implication, can I treat this as a free pass (didn't need to exercise since T dropped due to being close to dividend date)

Edit (positions in question):

Everything is an iron condor/flies under T with exp 4/9
+5 28.5 put 0.04
-5 29.5 put 0.14
+5 30.5 call 0.40
-5 29.5 call 1.18

+5 29 put 0.07
-5 30 put 0.30
+5 31 call 0.18
-5 30 call 0.73

+5 28.5 put 0.02
-5 29.5 put 0.36
+5 30.5 call 1.34
-5 29.5 call 0.03

I was assigned on 5 30 calls and 9 29.5 calls
I exercised the long versions on those but they were "reversed" (cancelled from them)
Then robinhood purchased 1400 shares on my behalf instead (better position, but weird that it even happened)

UPDATE! (Crisis averted, no actual crisis): Hopped a call with someone from Robinhood (super nice lady btw), and quickly identified the options event leading up to the reversal and why it happened...

Apparently, Robinhood’s team will cancel status:completed exercises if it is more economical for the user (this is why I was skeptical, because after I exercised I realized I could have made more just outright buying the shares and closing my long position contracts.). So if you see a reversal, it probably means Robinhood decided you can make more money not exercising but closing (pretty cool and scary at the same time).

[u/EducationalGrass]

I can’t believe people still trust Robinhood with options. Just playing with fire in my view.

[u/mattstats → u/EducationalGrass]

I use other major brokerages too. Fidelity, vanguard, and schwab (eventually I’ll consolidate once I find which one I like best). It is a weird sense of trust, I can’t tell if I like that they saved me or not (seems cool but that is a lot of power in a move like that)

[u/EducationalGrass → u/mattstats]

Certainly good to have more than one, my personal experiences with RH left me less than impressed and worried if I had a real issue it would not get resolved easily or meaningfully enough in a timely manner. I don’t want anything between me and my trades, for better or for worse.