Tenev said customers have already invested over $500 million into their IRAs. In January the platform launched IRA accounts with a 1% match. "As we continue to roll out new products - that's just going to further diversify and really strengthen the revenue profile of our business," CFO Jason Warnick said during the call. Shares of Robinhood were up around 3% on Thursday. Monthly active users in the first quarter totaled 11.8 million, up from 11.4 million in the fourth quarter of 2022, but down about 25% from last year. Robinhood's adjusted loss per share came in at $0.57, a penny more than estimated. In the first quarter, the company reported revenue that grew 47% over last year to $441 million, beating Wall Street expectations for $422 million. “If the stock is hard to borrow, that will be priced in already because every time a market maker has to buy calls or sell puts he is going to sell stock as a hedge.The Menlo Park, Calif.-based trading platform, once criticized for its reliance on payment for order flow, has been aggressively launching features in order to grow revenue and ultimately reach profitability. “I don’t think that investors will necessarily be purchasing puts,” said Joe Kinahan, TD Ameritrade chief derivatives strategist. Not everyone sees a massive interest in put options. The trader is then able to sell the real long position in the open market. Mark Sebastian, chief operating officer at, an option education firm in Chicago, said the difficulty in borrowing shares could result in “huge amounts of conversion trading during the first few days of option activity.”Ĭonversion strategies allow investors to create a “synthetic” short position against a real long position.Īn investor would buy the underlying stock and offset this by buying a put and selling a call with the same maturity and strike price. “There will be a lot of put activity with speculators buying these contracts on the view that the IPO price was overblown,” said Patrick Mortimer, director of options trading at stock and options block execution firm Pipeline Trading Systems. LinkedIn’s small float - just 7.84 million shares were sold in the initial public offering out of 94.5 million shares total - means that the limited number of shares available for trade makes it difficult to borrow the shares to sell short. LinkedIn’s original IPO range valued it at about $3 billion. LinkedIn is valued at about $9 billion, based on its share price on Thursday at $93.83, or more than motorcycle maker Harley-Davidson. “If it is hard to short, then the demand for options will be high since it’s an easy way to have leverage for less capital,” said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research in Cincinnati, Ohio. The massive gain in LinkedIn early has some investors suggesting the stock will not be able to maintain that level if not for limited supply, due to LinkedIn’s very small float, which is supporting the share price. The share price of the professional social networking company more than doubled in its first day of trading on May 19 after its initial public offering price at $45 a share. The sign up page of is seen in Singapore, May 20, 2011.
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