0/ We have the @RobinhoodApp & @vladtenev testimony today. The prepared remarks provide some insights on the business & what happened with $GME etc...

They have 13M customers, 13% trade options, 2% multi leg options and 3% are margin enabled

1/ The median age of an investors is 31; 1/2 are first time investors.

The median / average customer account size is $240 / $5,000.

This supports various theses that RH is the “play account” while users have another longer term oriented brokerage account.
2/ On the $GME saga they provide the timeline of collateral requirements during the week of 1/25.

Their obligation 1/25 as $124M the same day the VIX spiked 62% (3rd largest daily gain since 1990).

On 1/28 NSCC told them they had a deposit deficit of $3B. ($1.3B of VaR based)
3/ In addition to the VaR based they had an "excess capital premium charge" over $2.2B. The NSCC indicated RH owed $3.7B versus $696M already on deposit with NSCC, so the net amount due was approximately $3B
4/ They also mentioned over the course of 4 days they raised ~$3.4B from investors
5/ On PFOF they highlighted that their customers received more than $1B in price improvement during 1H20 from PFOF. They were paid ~$271M for that with the vast majority in options (which is not where most of their investors transact)
6/ On app design they take issue with "gamification" claims (who doesn't use confetti?)

"RH designed its app to appeal to a new generation of investors who are more comfortable trading on smartphones than speaking with a broker."
7/ "I am confident that the easy-to-use interface enables customers to understand, control, & direct
their finances in a responsible way. RH does not offer rewards or levels to encourage more trading. RH does sparingly use features like confetti animation
to celebrate..."
8/ They also spoke about financial literacy and their efforts around this. In '20 RH Learn articles were read by more than 3.2M people, and unique visits
rose 260% from January-November '20.

RH Snacks Daily podcast, was downloaded 40M times in '20.
9/ Interestingly they spoke about exercise of OTM call options.

"In January 2021 RH became aware that some customers were occasionally exercising OTM options causing them to suffer losses immediately upon exercise. To prevent these losses, RH implemented a procedure requiring
10/ customers to speak to a live registered representative before exercising OTM options."

On 1/29/21 they finally prevented customers from exercising these.
11/ RH also talks about market microstructure & the T+2 settlement system & why they think it needs to change to "protect small investors."
12/ Finally they spoke about diversity. Hispanic investors account for ~16% of the investor base while African Americans account for ~9%.

They announced women tripled in '20 & represent a "higher % of customers than ever before" but don't disclose the metric cc @eldavis8

More from Trading

1/ Feels like a good time to tell the story of how I went from broke to a millionaire to broke again in 2017/18 again...

Yesterday was brutal for some people...

Losing life-changing money sucks, losing any money sucks...you can chase the market or you can change your strategy.

2/ The original thread is gone but you can read it here.

https://t.co/cLLNs75rB0

tl;dr
- Traded $32k to $1.2m
- Thought I was a genius
- Made poor investments
- Didn't conserve capital
- Peaked at 150 BTC
- Lost nearly all of it

2 weeks from losing my house + no income. Oops.

3/ I am going to assume you are in it for the money rather than the tech. Yeah, you might Tweet about the amazing blockchaining of cross-border payments and oracles yadda yadda...really, you are in it to make money.

If you are really in it for the tech, go and build something.

4/ Okay, so if you want to make money, trading is super hard, you are trading against:
- Better traders than you
- People who can move markets
- Unknown information

And if you are trading with leverage you might blow up your account with the volatility.

5/ If you are not trading, you are investing. Okay, so what are you investing in?

I made the decision that the crypto with the best opportunity of existing in 10 years is #Bitcoin:
- Solves a genuine problem
- The right tech
- A proven track record
12 TRADING SETUPS used by professional traders:🧵

Collaborated with @niki_poojary

Here's what you'll learn in this thread:

1. Capture Overnight Theta Decay
2. Trading Opening Range Breakouts
3. Reversal Trading Setups
4. Selling strangles and straddles in Bank Nifty
6. NR4 + IB
7. NR 21-Vwap Strategy

Let's dive in ↓

1/ STBT option Selling (Positional Setup):

The setup uses price action to sell options for overnight theta decay.

Check Bank Nifty at 3:15 everyday.

Sell directional credit spreads with capped


@jigspatel1988 2/ Selling Strangles in Bank Nifty based on Open Interest Data

Don't trade till 9:45 Am.

Identify the highest OI on puts and calls.

Check combined premium and put a stop on individual


@jigspatel1988 3/ Open Drive (Intraday)

This is an opening range breakout setup with a few conditions.

To be used when the market opens above yesterday's day high

or Below yesterday's day's

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