/biz/ - Business & Finance

>>23249571
>>23250303
>Robhinhood will settle options about an hour before market close on expiry date BTW so you shouldnt be assigned. This can work against you if the desired price movement happens right around close but thats the price to pay using RH, not sure how other brokers handle it..
This is important because there are cases where you have both legs OTM. At 3pm robinhood starts trying to sell your options and after 4pm robinhood doesn't try to sell them anymore because they are both OTM. If the stock jumps up a ton after 4pm (this happened with TSLA to someone) then both legs can suddenly be in the money.

The thing is Robinhood actually lets your option expire, and since options can technically be exercised up to 4:30pm, you end up owing the entirety of your short leg and your long leg expires for NOTHING. You OWE credit on a debit spread that YOU PAID DEBIT FOR.

NEVER EVER let robinhood sell your spread on the last day EVER.