iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,424 Blog Posts

WSB STRIKES AGAIN: HIGH LEVEL AUTIST LEVERAGES $3k to $1.7m on ROBINHOOD

I verified it and it’s fucking real. Someone used the “Infinite Leverage” cheat on Robinhood and did this.

This fucking psycho took $3k and sold ITM calls to infinity and then margined the fuck out of it. He’s either going to be on a yacht soon or in jail.

You can view the thread on WallStreetBets here.

In July, Robinhood raised money and was valued at $7.6b and planned to IPO in late 2019 or 2020. Given the recent turn of events, where they quite literally cannot stop the buying, I don’t see how that is possible. Who in their right fucking mind wants to own this business?

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10 comments

  1. og

    I guess this explains the wild moves in AMD today? WTF…

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  2. awanka

    My favorite part about all this is that it’s really like Robin Hood; dispersing wealth from the fat cat class to smelly beggars via banditry.

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  3. helen

    U used to be able to do this on the Schwab platform by selling naked puts, using the prremium to margin to the hilt and than using the covered call premium to buy short term options…Been there, done that!

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  4. mx2101

    How easily and quickly can Robin Hood winners withdraw cash? Are inflows to Robin Hood larger than outflows from the occasional winner? Wonder if there is a bucket shop aspect to this?

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    • mx2101

      That is… from the trading strategy aspect, isn’t this the Martingale, and is Robin Hood the house/market?

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  5. natehois

    If this guy makes any money Robin Hood will just take it. I’ve seen them do it before.

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  6. acehood

    This is how PRESIDENT-ELECT Warren will pay for universal health care, pal!

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    • numbersgame

      Don’t knock the model when taken up to the big leagues.

      JPM long (assets): $2,622 B
      JPM short (liabilities): 2,366 B

      AAPL assets: $339 B -> 1/8 JPM
      AAPL liabilities: $248B

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    • numbersgame

      Or more to the point:
      record federal budget deficits + 10 yr economic expansion = hope for infinite growth

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  7. matt_bear

    “makes a great argument against my Forex trading friends and the WEAK margin they offer over there”….LMFAO!!!!!!!!!!!!!!!!

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