
Robinhood bug allows for “infinite leverage” - undefined3840
https://www.reddit.com/r/wallstreetbets/comments/dqg6xx/infinite_leverage_explained
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undefined3840
Some backstory: a Reddit user this past week started with $2k and somehow
bought $50k worth of puts on Apple ahead of their earnings on margin on
Robinhood and lost it all when Apple beat earnings and rose 2% the next day.

This should not have been allowed by Robinhood e.g. they did not intend to
allow options trading on margin but failed to track the source of cash the
user received from selling options on another stock.

Original post:
[https://www.reddit.com/r/wallstreetbets/comments/dpnzup/i_re...](https://www.reddit.com/r/wallstreetbets/comments/dpnzup/i_recorded_todays_marketopen_and_the_instant)

