Quote:
Originally Posted by Clayton
options are weird. wish there was an ELI5 for box spreads.
Basically, it's long a call spread and long a put spread, with the long options ITM/ATM. It's like buying a straddle, except you're doing it with call and put spreads instead of an individual call and put.
It's a defined-risk trade. From what I read in that thread, OP was positioned so large that Robinhood closed him out at market. His loss was a result of paying the spread.