Robinhood Dives Into Election Betting, Its Ambition Might be BigRobinhood has just launched election contracts, allowing users to trade on the outcome of the 2024 U.S. presidential election between Kamala Harris and Donald Trump.
The new contracts rolled out to a limited number of customers on October 28. Customers enable margin and options trading and need to be approved for a Robinhood Derivatives account.
With contracts set at $1.00 for correct predictions and $0.00 for incorrect, the payouts will be determined post-election certification in early 2025.
Contracts are available only for Yes positions, except that a No position can be placed to close out an existing Yes position. Customers may not simultaneously hold a Yes position for both candidates.
This launch follows recent regulatory developments, such as the D.C. Circuit's approval for Kalshi and Interactive Brokers to offer similar contracts.
While the CFTC voiced concerns about election integrity, the court permitted Kalshi to move forward, opening the door for Robinhood.
I don’t think Robinhood cares much about making money off Election contracts a week before the election — I think they are going for something much, much bigger…which is a marketplace to bet on anything, marking a potential shift beyond traditional stock and crypto markets.
In my view, this signals a strategic pivot for Robinhood toward a broader, all-encompassing platform where users may eventually wager on global events, similar to derivative markets.
Paired with recent rollouts like index options, futures, and a new trading platform, Robinhood’s rapid innovation rate is noteworthy.
Their agility demonstrates a keen ability to stay relevant in an evolving financial landscape, and if successful, this could redefine event-based trading.
Will this direction lead to a major expansion beyond traditional asset classes? Robinhood’s progress here will be intriguing to watch.
Robinhood is showing some impressive innovation here, and if this new product performs well, it could really boost the company’s diversification.
But back to the stock itself—after a 126% jump year-to-date, is now still a good time to buy?
Technically, In the long term, the current stock price is in an upward trend, but in the short term, the price has reached the upper edge of the bullish channel, making it susceptible to be rejected for a pullback. Furthermore, compared to the previous increases, the recent uptrend momentum has significantly weakened, further confirming the high risk of a short-term pullback.
Moreover, according to historical patterns, before each pullback in this uptrend, there tends to be a KDJ bearish divergence. The reemergence of this divergence currently suggests inadequate upward momentum, indicating that a short-term pullback in prices may occur at any time.
Therefore, although the Robinhood's presidential election contracts is highly favorable, from a rational perspective, it is advisable to entry after a short-term pullback.
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ROBINHOOD TO $70?! Let's break it down.NASDAQ:HOOD TO $70?! Let's break it down.
5 REASONS WHY:
1⃣ 4/5 ON THE "High Five Setup" trade strategy
2⃣ Strong fundamentals and AMAZING Sentiment
3⃣ The forming of a CUP N HANDLE pattern. Measure Move: $70
4⃣ Growth Beast! Newer generations are on board!
5⃣ Continue to grow their products and offer great deals for people to switch. Like the HOOD week, which had up to 3% match. They got me to move because the deal was too good to pass up!
Stay tuned for more!🔔
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When does NASDAQ:HOOD get to $70 per share?! Drop a comment below.
Not financial advice.
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HOOD earnings in 5 daysI expect a great quarter from HOOD after they listed SHIB.
I remember the substantial increase in revenues came after the DOGE listing. This time is SHIB.
But they also have great business strategies:
Robinhood Markets acquired Ziglu Ltd., a London-based crypto and payments company, targeting international expansion.
After they recently listed SHIB on their platform, Robinhood plans to offer 24/7 trading to its customers too.
Traditional market hours run from 9:30 a.m. to 4 p.m., nut Robinhood already offered extended trading starting at 9 a.m. and ending at 6 p.m. and they recently announced a new extension, from 7 a.m. to 8 p.m.
Robinhood could be the Millennial and Gen-Z ‘Schwab’, said a Morgan Stanley analyst.
In the chart you can clearly see the uptrend with a $19 price target.
Looking forward to read your opinion about it.
HOOD 24/7 tradingIf you haven`t bought HOOD`s growth thesis:
Then you should know that Robinhood plans to offer 24/7 trading to its customers.
Traditional market hours run from 9:30 a.m. to 4 p.m., nut Robinhood already offered extended trading starting at 9 a.m. and ending at 6 p.m. and they recently announced a new extension, from 7 a.m. to 8 p.m.
Robinhood could be the Millennial and Gen-Z ‘Schwab’, said a Morgan Stanley analyst.
In the chart you can clearly see the uptrend with a $19 price target.
Looking forward to read your opinion about it.
HOOD Robinhood Growth ThesisRobinhood has 22.5 million users with a median account balance of just $240, while Interactive Brokers has 607,000 users with 240K median account balance. the idea is that HOOD`s users are young people that for now don`t have enough money, but once they will get a job or earn more, the app will keep its userbase and they will most likely have thousands or maybe tens of thousands in their account.
If you haven`t bought the dip here:
Then you should know that with ‘hyper-extended hours’, Robinhood wants to make stock trading available more hours of the day!
I think that is the future of trading, 24/7, or just something from the past that we need to revive. “Continuous trading,” in which orders are executed when they’re received, didn’t take hold until around 1871.
My price target is $35!
Looking forward to read your opinion about this!
HOOD levels starting to showHOOD hasn't been trading for more than a few days but a look at the 15min chart shows that there could be a few important levels to keep track of. Mainly the 786 and 618 fib lines. 786 has shown to be the low end support level that has more or less withstood heavier selling pressure. meanwhile the 618 now appears to be a level of resistance as of the last candle on Friday. Prior to that, it held up pretty consistently as a level of support. Heading into the week these will be some of the areas to keep track of. From a price standpoint, around $35.75 on the upper end of the channel and around $34.70 on the lower end. Given the dragonfly doji at the end of the day, it will be interesting to see if the same type of defensive buying is the trend to start the week.
" With the latest Robinhood IPO, it’s almost a sign that institutional companies aren’t the only choice anymore and that the rise of the retail investor is alive and well...This week has been full of momentum both in broader markets and specific industries. Big news from the likes of Merck (NYSE:MKR) and Bristol-Myers Squibb (NYSE:BMY) helped shed light on the state of cancer stocks. Both companies reported significant events ranging from FDA approvals to revenue growth thanks to their cancer treatments...By the look of things, that bullish sentiment hasn’t subsided either. On Thursday, one of the biotech industry benchmark ETFs, Nasdaq’s Biotech ETF (NASDAQ:IBB), made a fresh 5-month high. Keeping this in mind, not only are cancer stocks a focus this week but the broader industry is too. In this article, we’ll take a look at several former biotech penny stocks to watch heading into the Robinhood IPO day. "
Quote Source: 3 Biotech Penny Stocks To Watch On Robinhood IPO Day