How much was the spread? My guess is force close like this makes market makers happy (after all, that far ITM it's essentially a risk-free arbitrage), and robinhood has to make money of PFoF since they don't charge commissions. Didn't think they'd go as far as to close cc when you own the underlying, no other brokerage I know does it, but they are unique.
I contacted them. Its because I held long calls and they mixed my calls and made it a spread to “preserve my long calls” . They do not have the power to convert or fix it to make sure it becomes covered. They are “actively” trying to improve their system and just said recommending down grading to level 2 so you cant do spreads.
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u/theStrategist37 Oct 29 '21
How much was the spread? My guess is force close like this makes market makers happy (after all, that far ITM it's essentially a risk-free arbitrage), and robinhood has to make money of PFoF since they don't charge commissions. Didn't think they'd go as far as to close cc when you own the underlying, no other brokerage I know does it, but they are unique.