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Robinhood shuts down option buying on $GME and $AMC

4 pointsby erulemanover 4 years ago

2 comments

arcticbullover 4 years ago
Nah, that&#x27;s not what happened.<p>This pertains only to the options chain expiring January 29th, i.e. in two days. You can still trade the stock, and you can still close positions you already have open, and you can still open and close positions expiring <i>next</i> Friday or any time after that.<p>RobinHood already doesn&#x27;t allow you to open new options positions on the day they expire (0DTE). They would have suspended opening positions on the chain on the 29th anyways. All they did way move that date up to the 28th, one day earlier.<p>This is because trading options that close to expiry has a much higher likelihood of assignment (aka pin risk). This is a risk management strategy on their part, nothing more. Generally if you want to trade high-risk stuff like 0DTEs or 1DTEs on GME and AMC you should use a real broker, like InteractiveBrokers.
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cable2600over 4 years ago
Reddit really shook the market.