Interview Tuesday: Alphacution Joins Options Insider Radio
Exploring the data that is lying around “hidden in plain sight” in the options market on this episode of Options Insider Radio with Paul Rowady from Alphacution Research Conservatory. Hosted by Mark Longo
Pulling Your Strings: How Retail Brokers Influence Trading Behavior (Or Not), By Design
Alphacution adds to its library of evidence that retail brokerage platforms specifically decide how, when, and if to influence the trading behavior of their clients...
Inspired by Renaissance Technologies: In Pursuit of the Omnitrade (and an Upgraded Map)
Inspired by Renaissance Technologies - as described in Greg Zuckerman's book, "The Man Who Solved The Market: How Jim Simons Launched The Quant Revolution - Alphacution leverages the concept of "factor dimensionality" to make a significant enhancement to its ecosystem map framework.
Summary of Robinhood’s Legal Woes
Today - February 26, 2021 - at 12:13pm ET - in what appears to be a well-managed front run of press collaboration, the Wall Street Journal published "Robinhood in Talks to Settle Finra Probes Into Options-Trading Practices, Outages" based on a filing that says the company is also being examined by the SEC, states. Here are the key parts of that filing - and then some...
Price Improvement: A Sacrificial Cost of the Trade
Alphacution provides numbers, pictures and rationale for "price improvement" - in the context of captive retail order flow - having an indelible function that is different than what you have been told by those who traffic in it...
Now You See Me: What The Bloomberg Opinion Guy Misses About Market Structure Mechanics
Leveraging numbers and narrative, Alphacution builds a higher-dimension analysis of market structure mechanics on top of Bloomberg Opinion's Matt Levine's recent manifesto on payment for order flow (PFOF). Disclaimer: No unsolicited elbows were thrown during the creation of this Feed post...
More Than $2.7 Billion in Payments for Order Flow 2020: Here Are The Breakdowns… (Updated)
“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.”Ayn Rand UPDATE (2/17/2021): The following exhibits and content have been updated to reflect an additional $12 million in order routing revenue for Tastyworks earned in Q4 2020; the data for which not being available prior to the initial publication of this Feed post. This brings Alphacution's estimate for total payments for order flow in 2020 to $2.755 [...]
Got Hood-lash Yet? 2020 Order Routing Revenue – Part I
This is the fuel that ignites the chaos. Without it, the New Market Kamikazes run into the friction that keeps the rubber on the road...
A Very Tasty Trade
"What's really happening here is that instead of people becoming engaged in finance when they're 40, 50, 60 or whatever, they're finally starting to learn that - hey - this is really cool. And so, we have an entire generation now which is not only going to support capitalism, it's going to accelerate the growth in free markets and [provide] massive amounts of liquidity so that everybody out there is going to benefit. This is the best thing [...]
GameStop and the New Market Kamikazes
"But how do we know when irrational exuberance has unduly escalated asset values?"Alan Greenspan By now, everyone - and I mean, EVERYONE - knows about how "GameStop (GME), [the] hedge funds’ most-hated stock, was targeted by an army of retail investors who marshaled forces against short sellers in online chat rooms. In the Reddit forum “wallstreetbets” with more than 2 million subscribers, rookie investors encouraged each other to pile into GameStop’s shares and call options, creating massive short [...]
