Robinhood on Shaky Ground and Potential Market Destabilization to Come

Published on
January 28th, 2021
33 minutes

The Robinhood Revolt as an Expression of the Fourth Turning

Robinhood on Shaky Ground and Potential Market Destabilization to Come

Daily Briefing ·
Featuring Jack Farley, Ed Harrison, and Dave Floyd

Published on: January 28th, 2021 • Duration: 33 minutes

Dave Floyd, founder of Aspen Trading, joins Real Vision managing editor Ed Harrison to talk about the newest developments in the GameStop story and the market implications of elevated activity in options trading. Floyd expresses his concern over the restricted buying over GameStop and other equities experiencing similar price action that occurred today, stating that it’s bizarre and ludicrous to mandate how traders allocate their capital, which cuts to the core of ongoing social issues. However, he explains that the anger arising from these circumstances is misdirected as the market environment and price discovery has continuously been muddled by regulations and monetary policy. Harrison and Floyd move on to discuss the equity market at large, and he explains that the record number of call options being purchased and puts being sold at open can introduce a destabilizing effect on markets. In light of this high implied volatility, he then expounds on how this impacts futures, the dollar, and time horizons, and what trades he has his eye on now. Jack Farley breaks down the saga of GameStop Corp ($GME) and how forced buying is turning into forced selling.