Stop me if you've heard this one before. but Robinhood is once again screwing over users. Robinhood Users say the trading app won't cash in their profitable bets against Silicon Valley Bank So if you look at some of these such as Svb, the ticker symbol Sivb, people have puts. but when it's not trading, the equity is not trading.

Well, that means inherently the options aren't trading. Remember what an option is. A call is the right to buy 100 shares per contract of a certain Equity the underlying asset on or before a certain date. Your puts are your opposite.

It's your right to sell it. so you still have that contract. That contract is a legal obligation. So even if Svb is not trading, you still have the right to sell.

And apparently people are starting to point out that Robin Hood is not letting you do it. It's all over Twitter And it's absurd. So they're almost doing the opposite. Usually when something is halted they only let you do position close only.

And if you remember not to bring up a nightmare from your past, a lot of people were right on Gme a light of people were right on other socks and it was starting to rip and they wouldn't let people buy. They took the buy button. In this scenario, once again, when retail has the opportunity to make money from selling, they're not allowing you to sell. And what's crazy is if the contract expires, if it goes back past your expiration date, you're not making money.

The contracts expired. Even if you're in the money, it's not going to Auto exercise which I think it's a term referred by X by X but that typically doesn't happen when something's frozen. but people still have the contract on a personal note. I'm not involved in this I don't have Svb puts or puts on other banks that are currently halted and I'm impacted by.

but there are a lot of people. A lot of average people who have this, have a huge, profitable position on paper and surprise surprise according to Forbes and many, many people on Twitter Robinhood is screwing them over once again. Now obviously I implore you to do your own research on this situation. But if you're not noticing a clear Trend with this absolutely horrific company I don't know how to help you, no one should be using it.

because time and time again, they are going to do the exact opposite of the mythology of Robin Hood And instead of stealing from the rich and giving to the poor, they are stealing from retail and lining their own pockets. And if you read some of the conversations going on, the support is absolutely wild. You could look here at: Slap City Fight Parks You can see exactly what Robin Hood has been telling them and this just isn't how most legitimate brokerages operate. Wall Street mods or even censoring posts about it.

What is going on? So this is the OCC Um, they make sure everything is running properly. In the world of options, this is basically the major options I Guess regulatory arm for lack of a better word so subject training hunts. When will they resume? What does this mean? Removal by X by X process. So X by X process is what the normal process for four options.

In this scenario, these stocks are halted so you can no longer use x by X process which is the automatic processing of what's going on in the world of options. As of March 14 2023, the blow options have been removed from the automatic exercise in expiration processing. As of March 14 2023, the blow options have been removed from the automatic exercise and expiration process because either training has been halted in the underlying. Securities That's exactly what happened.

Signature Bank Broker to broker settlement exercise. What do we have here? As a result, all exercise and assignment activity for Spny options beginning March 13 2023 will be subject to broker to broker settlement. So the X by X process the automatic in the money exercising not happening. Now this comes up to are you with the right broker and a lot of people are finding out that they are not with the right broker? Unfortunately this is a very very serious thing and a lot of Brokers saying nope we're not allowing you to exercise it even though people want to good morning you for contacting us at OCC.

Once again, that's kind of the regulatory arm that like is overlooking all the training of options. Spny stock is halted and has been removed from Xyx process. Your brokerage firm may have exercise restrictions in place in an effort to control their operational risk. If you're brokerage firm prevents you from exercising your puts will then expire without value on their expiration date even if it's in the money.

That's what this is saying is once again Brokers are basically saying go kick rocks and we're gonna screw you over. We've seen this before. We saw it when they took away the buy button and now they're actually taking away the exercise button. This is crazy and this just shows how shitty some Brokers are on 314 National Securities Cleaner Corp The Nscc uh said it will no longer accept Sivb and Sbny exercise.

so they're getting rid of the Xyx process. That's not really the crazy part, You have to get rid of it when the underlying is no longer trading like. That's not the crazy thing. The crazy thing is that Brokers are not letting these put holders exercise or really even the call holders exercise sediments will be by broker by broker.

What does this mean? In short, things are about to get F put holders will get wiped out even if they're up money. That's the crazy thing is people have a winning lottery ticket and they are not being allowed to do what they want to do. Um, we have a list here but obviously there's big focus on Svb and Sbny expectation versus reality. Normally if you buy a put and a stock goes to zero, you would make a boatload of money Wrong.

Not this time, not on Svb. You can only gain cash in two ways. sell exercise for Svb puts. Depending on your broker, you might not be allowed to do either.

Well, you can't sell Right now. It's no one is arguing. Really point A I Don't know if Ming Zao is, but you can't sell if the Market's not actively trading like there is. no Market No one's buying, no one's selling because the underlying is in trading.

So the A part doesn't make sense. The B part. That's where some eyebrows are definitely being raised. What should I do before diving into Xyx and broke your broker? Etc All mean for OCC Let me knock out the Urgent questions first.

When will they resume trading? No one knows on OTC probably after they're delisted. So the listing exchanges they're not actively trading so you can't have X by x Xbox is the automatic exercising. If in the money, this is it. My broker won't let me exercise what I Do: Open an account at your broker that allows you Shorts, then requests an Acat transfer.

you put short list of brokers who allow Shorts trade zero Cobra Trading and trade up. Um I've never used these three so I can't say if they're good or bad. Uh, but apparently these are uh, brokers who allow you to store but I have nothing to do with them. trade zero per the OCC no options or in Svib will be automatically exercised.

Once again, the automatic exercising is Xyx. That does not happen when the stock is no longer trained, the underlying is not trading. so you have to do a manual exercise. And that's exactly where people are running into issues on things such as: Robin Hood where they're like, no, we're not allowing you to manually exercise, trade zero clients holding puts in Sivb or Sbny, or anyone else opens a trade zero account and complete an A, C, A T transfer of it.

So basically they're saying transfer where you hold your puts to a different broker. a broker that allows you to go short because inherently, if you exercise to put, you're selling stock and if you don't have the underlying, that is probably the best thing you could do. I'm not personally in this situation I Want to make this explicitly clear, but it sounds like the best thing you could do is do an Acat transfer to a brokerage that allows you to short. Then you could exercise the puts and then you would have a net short position on both Sivb, Sbny, or one of the other.

Um, if you only have one, let's assume I convinced, find a broker that let me exercise what happens next. Well, you would exercise and you'd be net short and nothing would trade until the Stock's trading. Again, you probably have to have a lot. I Mean it looks like you have to have a 300 margin so you'd probably have to have lot of your money in account just for proper risk management.

That is obviously all set by the broker broker to broker settlement on a normal day for a list of stock. Brokers Have no problem procuring stock in T plus two and OCC has no problem guaranteeing this. but today they're halted. Uncertainty Exercise: OC says I Translate: F We can't guarantee this.

Interesting, What's next: Short squeeze risk. There is a risk. Here's why: tons of put holders will exercise on Friday tomorrow. Open interest is 130 million and 180 million.

Uh, they can convert it to shorts and pay a high cost to borrow I Find it very, very interesting that Wall Street Bets Mods are even censoring posts about it. Why would Wall Street Bets mods be centering posts about this? They're not trading right now. The exchanges of halted. It makes sense that the options aren't trading and it makes sense that there's no more Xyx process automatic exercising.

That makes sense. What you should be able to do is call your broker and exercise some. Brokers Don't allow you to go short so you'd have to do an Acat transfer to a broker that allows you to short and then you'd have to have an enough money in your account to go short at the appropriate levels if they have the stock to lend out. This very much feels like it's going to be a race of a situation, so the people who are quickest are gonna be safe in this situation.

Unfortunately, there's going to be a lot of people who don't even know about this process who don't even know what they can do. And even though they have a winning lottery ticket, they're not going to be able to cash it in and they're gonna get screwed over.