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I remember the gate-keeping options questionnaire (SEC mandated?) from RH, comparing to E-Trade:

* RH feels like accepting a TOS or a EULA; * E-Trade makes it that you are reporting net-worth and are willing to risk it.

Can RH be held liable for misrepresenting the regulations? This might have been settled without any loss of life.

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The explanation in the article is reassuring and all that, but even still RH was allowing $700k+ margin on a $16k account. Maybe they feel the risk is low for covered-options writing-- and justifiably.

However, last I checked (some time ago) a purely cash account would have required literally $700k+ to execute this trade. Because, you know, stuff happens.

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