Robinhood Has Changed Options Trading… Forever

 
October 26, 2020
 
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How Robinhood Has
Changed Options Trading
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 by betting on 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 companies to make a quick profit.

Watch today's interview to find out what to look out for in this new options market so you don't get caught up or misled by this peculiar option flow.
Watch it here
 
 
Top Gun: US Destroyer Buzzes Through Taiwan Strait, Rankles China

The leverage that China believes it has over the rest of the world is its vast manufacturing infrastructure that lords over just-in-time delivery, and the effective monopoly it has over certain technologies.

One of these technologies are rare earth elements (REEs), which Chinese magazine The Global Times called "an ace in Beijing's hand" after the U.S. Department of Commerce cut off Chinese telecom giant Huawei from access to U.S. microchips and components.

China has tried to shift reliance on that technology to other countries, and as I wrote last week, the country has been hoarding as many semiconductors and integrated circuits as it can.

Moreover, China may also try to cut exports of rare earth material to the U.S. in retaliation for both the ongoing trade tiff and the aforementioned military exhibitionism in the South China Sea.

That's important, because one of those REEs — neodymium — is integral to producing magnets. And what you might not know about magnets is that cell phones, MRI
What this all means
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Disclaimer & Disclosures
The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed.  Please see our Terms and Conditions for more information.

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