Robinhood on Shaky Ground and Potential Market Destabilization to Come( w/ Dave Floyd )

Real Vision: Finance & Investing

Real Vision

Investing, Business News, News, Business

4.1 • 1.1K Ratings

🗓️ 28 January 2021

⏱️ 35 minutes

🔗️ Recording | iTunes | RSS

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Summary

DB-Jan28,2021: 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. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:28.1	Te's and sees apply. Welcome to the Real Vision Daily Briefing. It is Thursday, January 28, 2021. I'm Ed Harrison.
0:50.0	I'm going to be joined shortly by Dave Floyd, who is the CEO and founder of Aspen Trading Group.
0:57.0	Before I talk to Dave, let's kick it on over to Jack Farley, who's going to talk to us about the news of the day.
1:05.0	Thanks, Ed.
1:05.9	The Jet Engine in GameStop shares hit a speed bump today as retail brockages like Etrades Schwab,
1:11.7	Tasty Works, and most notoriously Robin Hood banned users from buying the stock.
1:16.5	Now Robin Hood went even further, closing out long positions without the consent of the owner,
1:20.8	setting quote, unreasonable risk in brokering the position. of the anger has spread throughout society to the extent that two politicians Ted Cruz and
1:36.5	Alexandria-O-Kasserucatez on the opposite side of the aisle pretty much have said
1:40.0	the exact same thing, that what Robin Hood did is suspect and it should be looked into.
1:47.6	And that is exactly what the Southern District Court of New York
1:51.4	appears to be doing.
1:52.4	They have a class action complaint against Rabel Hood,
1:54.7	which they just filed just about an hour ago.
	...

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