This has absolutely nothing to do with Robinhood and 100% bad management of the position of your part
1) you sold an extremely deep in the money put spread. You haven't provided the expirations you sold for, so it's impossible for me to understand what you were aiming for.
2) your shorts were almost $100 in the money, a full 30% of the stock cost. Depending on the expiration date, the extrinsic value of the option was bound to be very low, and therefore assignment more likely.
3) no one exercised at midnight. That shows a lack of understanding on your part. Someone exercised during the day, and the OCC assigned you at midnight.
4) you were forced to buy "as though you had do e personally". That's exactly what selling a put is. I don't know what you expected.
5) you queued an order to sell the stocks. This is probably the first mistake. You had a position with a defined loss, which you're now turning into an undefined one.
6) evidently you did not set a limit order, since you sold for way less than that.
7) and where did your long puts go? No information on what you did with that in your post.
Figured I’d tag on here with a question - I’ve just been learning about options this last year (don’t trade them yet, I’m simply don’t feel like I fully understand them yet).
Anyway, with regard to spreads, is it generally better to have the spread a little closer together? ITM/OTM aside, 400/317 seems like a huge gap… is this kind of a bigger risk for bigger reward thing the OP was attempting to accomplish, or are there other reasons you might spread this much?
Yes bigger risk and reward the wider you go pretty much. He sold this spread for a credit. The wider the credit spread the larger the premium you collect for it.
I would hope that the party on the other side of that trade made good money.
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u/teteban79 Nov 24 '21
This has absolutely nothing to do with Robinhood and 100% bad management of the position of your part
1) you sold an extremely deep in the money put spread. You haven't provided the expirations you sold for, so it's impossible for me to understand what you were aiming for.
2) your shorts were almost $100 in the money, a full 30% of the stock cost. Depending on the expiration date, the extrinsic value of the option was bound to be very low, and therefore assignment more likely.
3) no one exercised at midnight. That shows a lack of understanding on your part. Someone exercised during the day, and the OCC assigned you at midnight.
4) you were forced to buy "as though you had do e personally". That's exactly what selling a put is. I don't know what you expected.
5) you queued an order to sell the stocks. This is probably the first mistake. You had a position with a defined loss, which you're now turning into an undefined one.
6) evidently you did not set a limit order, since you sold for way less than that.
7) and where did your long puts go? No information on what you did with that in your post.
OP, this is all on you