Robinhood shuts down option buying on $GME and $AMC

https://twitter.com/nope_its_lily/status/1354672423983935492

by eruleman • 5 years ago

4 14 5 years ago

twitter.com

cable2600• 5 years ago

Reddit really shook the market.

arcticbull6• 5 years ago

Nah, that's not what happened.

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 next Friday or any time after that.

RobinHood already doesn'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.

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.

Av8or1ab2• 5 years ago

There is no buy button on the page. I cannot purchase the stock. "This stock is not supported on Robinhood".

Av8or1ab2• 5 years ago

I'm seeing that on BB, BBBY, NOK, NAKD, AMC, and GME.

arcticbull6• 5 years ago

Yep, that's a new development. It looks like APEX Clearing, which Robinhood used to use - and probably still does, though they've been developing their own clearing system at home - has blocked all transactions in these shares.

Robinhood shuts down option buying on $GME and $AMC

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