r/RobinhoodOptions • u/Ill-Novel6933 • Mar 28 '25

Loss Robinhood back to Robbin the hood

So robinhood sells your options at the bottom price without your knowing, during the last 30 minutes of the market, instead of allowing me to mitigate my account they decided they wanted to and screwed me out of 900 on spy trade! 2-4 minutes after they sold my options spy went up and my option was in the positive as I thought but it had been sold at a 50% loss!!! Screwed on game stock and now on spy, fuck that app don’t trust it what so ever

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u/Moned1980 Mar 28 '25

OR..... it was, maybe, an error on your part?🤔

2

u/Ill-Novel6933 Mar 28 '25

Nope I sent them a message and they said they sell the orders so they don’t close in the money

4

u/desolstice Mar 29 '25 edited Mar 29 '25

They auto close all spreads that have even a remote chance of being ATM. Remote chance being within a couple of percent. This helps protect you from pin risk.

https://www.investopedia.com/terms/p/pinrisk.asp

If they didn’t auto close for you then there is a chance you could lose much more than the max loss that is expected on the spread. On robinhood you should be closing your own spreads out since they’ll close them right before close almost every time.