Something I still don't understand re: the Robinhood suicide story (threads elsewhere on ET: 1, 2) that perhaps an options-specific forum might be able to explain. The narrative at this point is that the kid misinterpreted the negative $730K cash balance he saw as a debt he owed, when in actuality it was just due to one leg of a spread having settled. Much has been written about how RH should have had clearer messaging to avoid user confusion etc, but I still haven't seen an explanation for the bigger Q: how was it that a $16K account -- what this kid apparently had -- could ever have even opened the kinds of positions that would result in a -$730K cash balance being displayed (even if it was illusory)? This Forbes article offered an illustration of how the situation could have come about, using an example of an AMZN Bull Put spread: I don't trade credit spreads, but what I don't understand is this: how would a $16K account even be able to put on that kind of trade in the first place given margin restrictions? Isn't Forbes using an example that would be functionally impossible for an account of that size? (Yes, I know about infinite-leverage bug so margin issues not RH's strong-suit, but still.) In short, I understand how an illusory negative cash balance result from only 1 leg of a spread exercising/settling, but I just don't understand how any series of option transactions or settlements in an account with a ~$16K value could ever result in that magnitude of a deficit. Can someone who has more experience with such spreads help clarify? Is it plausible that a $16K account would have been able to put on a trade like the one described in the Forbes piece? And if yes, wouldn't a brokerage have liquidated positions long before any scenario in which a $16K account would be looking at buying $730K(!) worth of stock?