So about 5 days ago this guy decides to do a box spread on his $5k robinhood cash account. He writes 500 $10 calls and 500 $15 puts. He buys 500 $15 calls and 500 $10 puts. He legs in using the credit he received to keep buying, thats how he was able to transact millions of dollars in options on a $5k account. He did this in 1 day. Bragged to everyone that if he holds to expiration, it's a free $50k. He got $300k and will have to pay $250k in 2 years. He's so confident he withdraws $10k (double the amount he had in his account) Next day, 283 of the $10 calls get assigned to him. Robinhood closes his account and tells him THEY will close the trades and now his balance is -$57k. Not even sure if robinhood closed out all his positions yet.
Seems like robinhood is some millenial daydream that they can do better. Soon they will put in place all these rules and costs and be like any other broker.
That's a return of -1,140% in 1 week, definitely the worst trading loss I've ever seen on a percentage basis.