2021-08-05 08:29:20
Robinhood Achieves Stonk Status
Robinhood didn’t exactly make a star-studded market debut… but $HOOD could be boasting one of the sickest post-“bad IPO” comebacks we’ve ever seen.
Robinhood fell from $38 to close at $34.82 on the day of its IPO. Since then, $HOOD has only seen upside. The stock is up 102.1% since last Thursday, its first day listed. Here’s the intraday chart:
Demand for the IPO was mixed at best. This happened because many retail investors felt they were “wronged” by Robinhood’s decision to freeze some stocks’ trading amidst January’s market volatility. Tons of potential $HOOD investors stayed away, concerned about volatility in the stock itself. They got what they were looking for and now they want in.
Some of that volatility can be attributed to two things: options trading (which started today) and reportedly-high levels of short volume. According to Fintel, $HOOD stock has demonstrated a short volume ratio of greater than 50% every day since its IPO. The short volume ratio is calculated as the difference between FINRA short volume and FINRA total volume.
What we’re seeing could be a mix of a short squeeze and options speculation, but that’s hard to know for sure. All we know is Robinhood has ~officially~ achieved stonk status.
611 views05:29