patrick.net

https://www.marketwatch.com/story/trader-says-he-has-no-money-at-risk-then-promptly-loses-almost-2000-2019-01-22

(from early 2019)

He bought 4 different types of options that gave him a $300k credit. At the end of expiration, like 2 years from now, he would’ve collected $40k or $50k. The way he bought it was set up like a hedge, so it didn’t matter if the stock went up or down because he had options that covered him no matter what. But then 283 of those options were exercised by the guy on the other end of his trade meaning he had to come up with 28,300 shares of that stock which he didn’t have. I guess then Robinhood took the liberty of exercising his call options to pay for the options that got exercised from him and then it was just a whole shitshow after that.

He used the supposed cash value of each position to leverage the whole thing higher, recursively.

Then he withdrew twice his actual cash input. Then everything imploded. Not sure what happened to him in the end.

Betting with other people's money seems fair enough to me, if they are dumb enough to let you do it.