Alphacution quoted in Financial Times story by Madison Darbyshire in London and Eric Platt and David Carnevali in New York on Robinhood's controversial brokerage practices, "Robinhood faces questions over business model after US censures" (December 19, 2020).
“Entrepreneurship, you will only understand it if you experience it for yourself. It’s not something I can explain in words.” – Masayoshi Son On September 4, the Financial Times was first to report that “SoftBank is the ‘Nasdaq Whale’ that has bought billions of dollars’ worth of US equity derivatives in a series of trades that stoked the fevered rally in big tech stocks…” Since then, a consistent drumbeat of other articles and podcasts have been published; some of them tying SoftBank in with Robinhood and other retail brokers as leading factors that may explain the (concentrated) run-up in US equities from the March lows to the early September highs. For those of you who don’t speak options as a first or second language, the logic of SoftBank’s potential impact on cash equity markets based on equity derivatives positions goes like this: Derivative markets are zero sum. For every unit long there is a unit short. Customers, like SoftBank, typically buy options – outright or via spreads – to be long deltas of the underlying security. Market [...]
“You’d never believe how hard it is to find a wetsuit in Boston.” – Dave “Davey Day Trader” Portnoy Alphacution quoted in Financial Times story on day trading, “Day trading: no complaints from Portnoy” (June 17, 2020).
Alphacution quoted in Financial Times story by Philip Stafford on options exchanges, “US options exchanges prepare to reopen trading floors” (May 3, 2020).