Robinhood shares surge 80% as Nasdaq halts trading three times

Robinhood Markets’ shares, the eponymous app for trading securities and cryptocurrencies, reached $85. At the time of writing, HOOD was trading around $63.

On 4 August, Nasdaq трижды останавливала торги ценными бумагами Robinhood из-за высокой волатильности. Trading of the shares had resumed by the time of writing.

Retail investors bought Robinhood shares for $19.4 million, making the company the sixth by number of shares bought, and its securities became the eleventh most popular among investment apps, Bloomberg reports, citing Vanda Securities.

~WSB Increases In Comments~$HOOD : 1431% ~ 72% bulls$SEDG : 1300% ~ 100% bullshttps://t.co/KiCE4DnjVW

— Swaggy (@SwaggyStocks) August 3, 2021

5 August 2021 | 11:58Update:

The Robinhood rally could have intensified a gamma squeeze. According to Zerohedge, there was heightened buying activity in August-expiring call options with strikes of $70 and $95.

Subsequently, heightened buying activity in the spot market forced sellers of call options to hedge their positions. They reluctantly joined the group opening long positions. A mechanism similar to a short squeeze operated. In the GameStop case, a similar pattern unfolded. Traders on Robinhood, part of the WallStreetBets subreddit, could also have participated.

Before the U.S. session, SPB Exchange сообщила about a trading halt for HOOD shares from 14:19 MSK due to high volatility. The platform noted a 20% price move within 10 minutes. Trading resumed at 14:49.

On 29 July, Robinhood conducted its initial public offering. The day before, the company set the starting trading price for HOOD shares at $38 and a market valuation of about $32 billion.

On the first day, trading closed at $34.82. Market capitalisation fell to $29 billion.

On Tuesday, 3 August, HOOD’s trading session closed at $46.70, up 24% from the opening price. On Wednesday, 4 August, in pre-market trading, quotes topped $53.

Cathie Wood of ARK Investment Management acquired through its ARKK fund 1,297,615 shares of Robinhood on the day of the platform’s Nasdaq debut.

Read ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, rates and analysis.