Robinhood Investors Getting Rich
Last Thursday, Robinhood (HOOD) went public at an IPO price of $38 per share. The stock sold off a little that first day, but today, the stock reached a price per share of $85 shortly after the stock market opened.
This works out to a 123% gain in one week. Not too shabby for a recent IPO.
Even if you had waited until yesterday to buy the stock on the close at $48.50, the gain would be 75%.
Robinhood has almost turned into a meme stock, not due to a short squeeze but due to the popularity of the stock, as it has garnered much attention on Reddit.
Options started trading on the stock today, and the volume and activity is huge. The strike prices range from 20 to 95 for all expirations from August to January of next year. Will higher strikes need to be added? Who knows? Maybe even lower strikes.
The August implied volatility is over 200% and September is in excess of 170%.
It will be interesting to see if Robinhood turns into another GameStop (GME) or AMC (AMC), or if it takes you for a RIDE.
Disclosure: The author owns two shares of HOOD.
Disclaimer: This article is designed to provide information. It is provided with the understanding that neither the author nor the ...
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Of course the quick way to "get rich quick" is to buy low and then sell high. The challenge of selling high is always that to sell there must be buyers willing to buy at the high price. Without buyers the result is not profitable,short term at least. Now with this particular stock the question I pose is "what is the product". Product has a big effect on earnings and without earnings it seems more like a bubble. I would choose to avoid owning a bubble because they always pop. So some folks may have timed buying and selling just right and come out ahead. That time may have passed.
What happens when all of you $HOOD bums go to sell but Vlad halts selling until the rest of the execs are done with the dump? 🚀🚀🤡
Power to the players. We will change the very foundation of the stock market!