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Robinhoood

Robinhood is outperforming the markets. Here is it's one day and ninety day charts. ::::::::::::::::::::::::::::::::::::::; There is news about something happening which will positive for brokeage companies. Here it is. Robinhood was down in the premarkets but up on the day. The Genuius Act is coming. If it was going to be passed tomorrow this stock would have jumped up more than it did. Let's start to watch these Puts and the trading action in Robinhood to try to outguess what might happen next. Here is where these slightly "in-the-money" Puts that expire this week closed today, a Monday. If the DJIA jumps on the opening and Robinhood gains a bit I would be jumpng in on the Puts in the first five minutes of trading looking for a short term reversal. If it pops more than $2.00 on the opening I would just stay away. Now here is it's five day chart. Let's see what happens.
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"One-Day" Puts That Crazy People Can Play - Netflix

Read the previous blog first, about Exxon on Friday. The Puts on it's last day before they expire options increased in price in the last few hours of trading. So to did the Puts on Nexflix on that same afternoon. Can you see how it sold off six dollars in the morning trading session (the first chart below) only to rebound almost three dollars? Then the stock got tested again and this time it lost it's steam.
Then what happened? Well here are the 470 Puts at 12:08 p.m. which expire at 3:00 p.m. The stock looks like it is trading in a channel downwards. See the chart below.
What next?
Yes the stock continued to drop approaching the 3:00 p.m. deadline/ expiracy time date. Now look at the same series of Puts at 2:12 p.m. They were trading at $490.00.
Looks so easy right? Let's check out it's five day chart and it's year-to-date chart.
Yes on Friday it looked like it wanted to roll over. * Two things. The reality of trading short options like this. Lock yourself in a room and run a bunch of moniters. Lots of cool stuff can happen on a Friday afternoon. If you going to play in this market focus on stocks in this price range. You need a stock that can swing three or four dollars in one day. Lower priced stocks do not. Big swings at this time of the day - like plus or minus $1.00 swings in fifteen minutes often happen. At some point in time take your profits and turn off your computer. There will always be another trading day. ** On the following day Netflix was down after $12.00 mid afternoon. What a drop.
Keep all of this in mind the next time you are thinking of the stock. It can move quickly.

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