How Robinhood Has Changed Options Trading

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Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

We have entered a new world in which internet novice traders are gaming the stock market. New investors have flooded trading platforms like Robinhood, betting on stock picks for zero commission fees. Robinhood memberships increased by more than 30% in Q1 of this year alone.

Some have compared this new style of trading to gambling, where traders take on risky investments in the hopes of short-term home-run returns. Those same traders are now taking it a step further – now seeing the value in the options market. Swarms of internet groups are now placing orders for cheap, out-of-the-money options hoping for 100% returns intraday.

The veracity and volume of the order flow stemming from these trades could be mistaken for a single large institutional trade. But this is not “smart” money. These are tactical plays developed to move the needle in certain company’s to make a quick profit.

Watch the interview to find out what to look out for in this new options market and not be misled by peculiar option flow.

As intraday trading price swings are becoming more unpredictable in options markets and the stock market alike, how does investing in the next industry poised to boom bigger than the internet sound?

A technological disruption that CNBC experts are calling “revolutionary…” A tech that could be worth $15 trillion that is rolling out in January…

Click here and I’ll show you the technology and stocks Google and Amazon have already invested Billions of dollars in.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.