nice. for my edification, what was the catalyst leading to that gap up in early May ? ps, it'd be helpful if you have the volume data on display
Any resources you guys recommend to learn charting/TA? I saw TD Ameritrade had some free classes online, was gonna look into YouTube as well.
It gapped up after an earnings beat. I do usually have volume on there, but I deleted all the other stupid indicators I was using to clean it up for the screen shot.
Robinhood Markets Inc said on Thursday that it would consider expanding requirements to make users eligible for options trading, following news that one of its customers took his own life after believing he incurred a large loss using the free trading app. what a mickey mouse operation Robinhood is ! i had to jump thru hoops (training) to get Schwab's approval to trade options; and that was only for selling covered calls. after a year of doing it, w no major hiccups, i had to jump thru more hoops to get approval to trade spreads. and this was in 2000
I wonder what other cases there have been. I presume the only reason we have heard of this case is because he took his own life.
constructed a 37.5 LEAP CALL calendar play, coupled w a bullish put spread, on this beaten down stock; my analysis has concluded that KHC has bottomed, and is forming the handle to a cup w handle formation i believe KHC will close that 34.5 - 44 gap that was created in early 2019. bto Jan 2021 37.5 CALLsto Jul 31 37.5 CALLbto Jul 31 29.5 PUTsto jul 31 34.5 PUTnet/net, $1.65
For actual trading, read that td Ameritrade like Robinhood sells your order data to hft. Something to consider - low/no fees vs having hft front run against you.
Are you long on the underlying? What's your exit plan for the put? Their revenue growth looks very sexy.
I need to check but on some of the newer questionnaires I've seen... You basically get level 2 or 3 on Options with doing a simple set of questions, even on other brokers too (e-trade/Webull/tda) - I think Schwab is more serious still but others I've seen don't care. Like they might not get you level 4 (I think that's a 3 on Schwab since they rate things differently for naked calls etc.), but at 2/3 depending on broker, you're now able to trade spreads and can go negative - since some brokers only require you to have the difference between strikes, and then they fail to mention dangers of an option being exercised early in a spread. I have a feeling this was a situation where either it'd be fixed next business day - so not actually negative or he got stuck with the time the short leg got exercised and was otm the next day etc. And he probably was moving multiple contracts. I know even garbage RH requires some collateral but they don't tell you the full reality of the situation. Regardless, I think you're right and things should be changed.
Yeah, it's definitely been happening I'm sure (probably more now, I mean going negative and trading options not knowing risks). I saw one where someone was at -35k and while they might have been trolling (and had more accounts) it definitely was a real account/example.
Yes, I like them as well. I didn't get the earlier breakout, but was able to get DDOG when it broke $75 on June 8th. I sold half my position today, and bought two soon to be expiring puts on it. Felt like it was running too high. Depending on how it reacts I'm hoping to re-buy to full position in the $76-75 range. Hardly ever works out the way you want it to though.
Most folks don't really care since their accounts aren't that large to be impacted by the front running. If someone on RH is buying 10 shares of FB and losing a fraction of one cent I think they would still be ok with it since the trade has no fees.
I'm not sure on the degree to which they are front running; are hft able to constantly cream off every individual trade?. Anecdotally my bro says his limit orders on td always fill very close or at his limit price, whereas on ibkr I've had situations where due to sudden market fluctuation my sell trade executes above my sell order because the platform is looking to execute at the best price. E.g., share was at 99c, I place limit sell order at $1 and trade executes at $1.03. In such situations, is td's hft able to queue a buy order at $1 just before placing your $1 sell order and his sell order at $1.03? There could be even more creaming on market orders.
They are not selling your order data (which would be visible to anyone on the DOM anyway had your order gone straight to an exchange); they are selling your orders themselves. Instead of going straight to an exchange, Robinhood, etc sell your actual orders to market makers who use them to manage their inventory. This extra step will result in slower executions and possibly poorer fills. It doesn’t really matter if you are swing trading with hold times of over a day, but I absolutely would not trade intraday with these platforms, where good fills are crucial. The idea that these firms are trying to front run retail traders is unlikely imo. These types of rumors have always been around, but I’ve never seen any real evidence of it.
They (it's just market makers) can not cream/skim off any trades beyond collecting the spread (you’ll be paying that anyway). The only way they could actually "front run" you is by seeing large amounts of orders placed by retail traders before any other firms do then using that information edge to place a directional trade of their own. This would be a market "manipulation" that could move price and hurt your individual trade in a way that natural market moves might not. This is possible, but I'm not sure it's actually happening, and even if it is, oh well--that price manipulation will affect you even if you are trading that stock with an exchange level broker. And sometimes the manipulation could work in your favor... But so far as I can tell it's just market makers buying the order flow from the budget brokers. They're not into taking directional trades. Their function is provide liquidity, manage their inventory and collect the spread. Sometimes you get lucky on limit orders like that. It’s just a function of the market being thick/thin at that moment. TDA is not playing pricing games like that.
