What Truly Occurred With Robinhood? | Pet State Of Minds Episode 189


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In this passage from episode 189 of the Pet Spirits podcast (taped 2/1), Michael Batnick and also Ben Carlson review all points GameStop, Robinhood, when markets come to be a popular culture sensation, and also a lot more.

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What Truly Occurred With Robinhood? | Pet Spirits Episode 189

47 Comments
  1. Diego Joachin says

    Do send your recommendation to have the CFA curriculum updated.

  2. Pendamonium Paladin says

    Schwab also limited trading, so it's all bullshit…

  3. Parker Wrozek says

    Can someone tell Batnick how to pronounce "Doge"? Or just watch the OG video: https://www.youtube.com/watch?v=tLSgRzCAtXA

  4. Mark Morse says

    Great episode!

  5. Steve Uhlman says

    Great discussion guys! ????????

  6. Ian X says

    Big huge enormous difference between Facebook and Robinhood: network effects. FB is a social network where users congregate with other users. If you #deleteFacebook, all your friends are still on there, and if you go to another social platform, your friends may or not be on the alternative. Robinhood is a brokerage with a dozen alternatives. It doesn’t matter if all your friends are spread between Schwab, TD Ameritrade, Fidelity, Vanguard, Interactive Brokers, etc., it’s not a network where users interact with users so nothing keeps a user tied down. I don’t know exactly how Robinhood’s user numbers will shake out after all this, but this is NOT good for Robinhood any way you slice it. Users are pissed as hell, and the switching costs are low, and there are a dozen or more solid alternatives. At one point over 50% of Robinhood users held GME, so it’s not a small portion of their user base who were affected.

  7. OurNewestMember says

    3:32 "your baseline is Vanguard target date funds" ???????????? I…I can't…!!

  8. Michael Lomenzo says

    This isn’t the first time that RH has gotten an F on communications. At a certain point maybe you change your brokerage account and dump robin shit

  9. Richard Suver says

    "

  10. GP K says

    Robinhood markets free access to the masses under the guise of democratizing trading. Meanwhile their business model relies on scaling and funneling massive inflows of unsophisticated users, providing them with non-qualified credit up front to sway them towards options vs stock buys. In essence converting them into risky day traders. Why would they do this? Simple. To funnel all their poor trading decisions in the form of order flow to banks and hedge funds so that the big boys can trade against them and reap big wins. Does anyone think Citadel is paying 600B per year for trade flow data so that they can mirror the trades? This is a sophisticated and legal con that sucks billions from the little guy into deep pockets. If you don't buy this, just remember, Robinhood provides zero educational content to the users.

  11. CaleHeintz says

    Hearing about GME and robinhood a bit played out. I do enjoy the content but I think its time for the world to move on. This has almost 0 impact on anything relevant going forward and stocks make irrational moves like this on a regular basis. Maybe a thousand examples and all the sudden everyone is so concerned.

  12. Vanessa MARTINI says

    RH just got a cease& desist in Dec 2020 for failure to disclose how they made their $ to their clients. Paid a 65M fine

    Citadel was the largest short position holder in said securities

    Citadel buys the order flow from RH & is essentially their entire revenue stream

    Citadel Steve Cohen bailed out Melvin capital days b4 from his horrible decision to stay short even after Ryan Cohen took his board seat

    They then saw that GME was in a VW type of squeeze & was NOT stopping at 500

    They then pulled the rug

    No other way to spin this

    T+2 great story
    Raised 3B no they negotiated it to 700M

    If it was clearinghouse issue then BAN ALL TRADES not issue a sell only while letting HEDGEFUNDS including CITADEL to continue buying

    RH did NOT grow its base this week/ even if they grow they r losing at the same time

    30 lawsuits r NOT disappearing but of course Citadel & RH would rather pay a tiny fine rather then lose B’s more to retail traders

    Dig deeper it’s easier to just follow the media’s take on this & run W it but the truth is that a stock at 150% short float was bound to squeeze once the tides changed (tide being Ryan Cohen)

    Btw entry on GME 7,19,22 exit 333,438 so I’m ok but it was a robbery.

  13. James Bundy says

    I like Robinhood . Easy to use while at work all day.

  14. Keylin Huddleston says

    Michael does not let Ben forget about those target date funds lol.

  15. Marvin says

    The amount of times I had to explain the DTCC and all the other parties involved in a trade to my friends is unbelievable lmao. Anyone that isn’t in Finance/Financial services thinks Robinhood is in bed with the same hedge funds they were trying to take down

  16. Matthew Tae says

    Watching Vlad being interviewed… he has no clue what his company does in terms of banking. Great UI… Robinhood / Vlad are puppets. SCHWAB is AWESOME, great job. I'm a customer for life. TD & most brokers won't let you trade (or limit) options in GME…. they're keeping the cash from cutting up GME & others on the way down, like many of the brokers (except Schwab). The options premiums are insane… if you bought GME at $60 before 1/27, AND if your broker let you sell calls on the stock position, you'd be fine on the way down. Most brokers didn't (or severely restricted it)…I think many are clawing back losses and you can see which brokers are good or not based on how they're letting you trade the options on GME. This is the distribution phase on the way down…for Wall Street / pros. The people who sold calls, got bailed out on Thursday 1/28… the call sellers are the broker community. Schwab knows how to hedge. Great firm… let's you trade the options. Watching Vlad, they were F'd… he has no clue what he's doing as a broker. On 1/27, when the options skew changed, you could have sold the 7/16 $5 puts in GME for $1.50 premium (I look at that trade as free money)… IF GME went to 1000, or to the moon… a lot of brokers would have blown up. Free money was being generated by the volatility, with the brokers being the bag holders. Interactive Brokers was funny… they're the algo platform so they would have been blown up from their pro algo traders following the Robin Hooders. The DTCC & clearing firms… saw that brokers would be blown up… the options tell the story.

  17. David Strong says

    On public we don’t have options, or margin accounts . Apex told public to stop trading those stocks. If your thinking this is not a conspiracy it’s insane !

  18. FredSox49 says

    I'm looking out the window at Griffin's new $54 million penthouse in Chicago, which is a spit in the ocean compared to what he's building in Palm Beach. Does Cooperman believe he pays his fair share?

  19. Paul Lopez says

    Appreciate the insights Ben and Michael! Robinhood seems to have 9 lives. I'm glad you guys invest the time to educate people about investing for building wealth, not gambling.

  20. Jarrod Luke says

    Thats why I use Tasty Works. Best decision I ever made. Platform is fast and stable. Also, retail needs a huge lesson in option/future education, strategy, cost basis reduction, and capital efficiency. I blew up two accounts before I finally started to learn. Now at least if I lose money I blame myself and not "the market". Understand risk and reward.

  21. Joseph Snyder says

    Wall Street had the machinery to trade high volumes …Robinhood had a front end engine but no …car

  22. Vancity829 says

    The reasoning for the shutdown still doesn't make sense to me, the day after it halted trading Robinhood sent out a press release saying the market was too volatile for them to continue facilitating trades with a stock that can plummet to $4 and have so many people trading on margin. Webull along with other trading platforms such as Schwarb did the same at the same time with basically the same rhetoric. Robinhood after being the main source of public anger comes out and says it is a liquidity issue and nothing else, which in hindsight is a fine reason for what happened but, it had already through their CEO Vlad said why they had to halt trading that was along the same line with the other brokerages. The story changed once the heat came and people are letting the other brokers walk without questions and that to me raises eyebrows. For everyone to just assume this is nothing unreasonable and say that all parties acted in good faith is naive to me. We all know that people cover their own asses when they are left in a vulnerable place, and by many angles, there were people with powerful positions about to get their asses kicked in. Also that one tweet about assuming incompetence, this company didn't just spring up out of nowhere with kids at the wheel they knew that they were going to fuck people.

  23. Joseph Snyder says

    How do toddlers learn …by going through their terrible twos !

  24. Joseph Snyder says

    Robinhood …successful….until you’re not ????????????‍♂️

  25. Michael AP says

    RobinHood wasn't first brokerage to stop trading on meme stocks, also RH clearing firm citadel was ???? to the same company that bailed out the hedge funds. they not inherently evil, is just there I was told him to pull the plug and they did. Money is never good or bad

  26. Michael AP says

    Lol ????

  27. A nt says

    This was a PR issue…..you guys are nuts….why would TD Ameritrade restrict? Can you define Broker? Because they failed that definition…..why hasn’t the SEC shutdown this fraud? Why hasn’t the SEC not investigated TD. Not your brokers role to do anything but to transact for you…..

  28. Fidelb33r says

    Can somebody explain why the DTCC enforced restrictions (only closing positions, restrict buying shares etc ) only seem to apply to certain brokers (Robin Hood, TDA, Schwab, Webull, Interactive Brokers) but not from what I heard to Fidelity or the hedgefunds that were also trading in GME ? Why wasn't trading in general halted for everyone?
    I'm trying to understand this situation.

  29. Martin Genet says

    Do you think fractional Calls/Options can become a thing? like 100 people, each with one share of tesla can pool together for a covered call? or pool together to buy a call or buy a fraction of a call?

  30. Nick says

    RH went down last year at the end of Feb because they didnt code the leap-year system in and it flipped out

  31. Victor Charlie says

    Do you two work for Melvin captial

  32. J YH says

    Ffs you DONT have to “liquidate” your positions! The US brokers have supported account transfers with no tax implications for years. It’s just that this Fkg joke of an app (not a broker, an app lol) buries the transfer feature so it’s product (oops , I mean users-who-are-the-product) can’t find it.

    Transfer your account, 3 days max. Your new (and far more competent) broker makes it easy. But can you live without the confetti? ????

  33. Daniel Westereng says

    lack of knowledge of options led to that man losing his life.
    NOT OVER TRADING

  34. Daniel Westereng says

    how is it fair for them to shut things down when they get a margin call but we all have to figure it out on our own

  35. Joseph Oppenheim says

    Did you guys ever hear of Lehman Brothers? Believe it or not, Internet guys didn’t found it. Amazing how many still want to blame tech guys.

  36. William VIncent says

    What an a-historic take "YEAH RH WAS DOWN IN MARCH WHEN PEOPLE WANTED TO BUY" People literally logging on to liquidate their accounts is what cause their servers to crash lol

  37. James Shields says

    I stole from you but I didn't know someone owned it. That's "incompetence"?…

  38. James Rippel says

    Regardless of clearing house issues, restricting buying but not selling was inexcusable. Clear manipulation.

  39. Sergio T says

    How would you dope heads know what goes on behind closed doors of the elite…

  40. carl fxi says

    But it's not changing the rules. It's a margin call on a leveraged product.

  41. Justin Baker says

    Would have been cool if robinhood banned buying on all shares not GME, AMC. Pointed them to etrade for everything else

  42. Hair Harbor says

    Switch to Schwab

  43. david hayes says

    Sure maybe Robinhood will be okay but will they be MORE successful then they would have been without the BULLSHIT? I always have rather paid a commission then have someone like “Robinhood” as my broker.

  44. david hayes says

    Maybe people are downloading it to see how stupid it is for themselves?

  45. The Heat Inferno says

    GME = $1,000

  46. Twitch Highlights says

    IB didn't let you buy shares, don't have shorts available on popular tickers that have huge gap up, crap and slow platform, so much for a professional broker. Its design to make you lose money, if you trade short term.

  47. Web User says

    Give Robinhood credit for being the #1 choice of retail traders.
    Schwab, Vangaurd, E-Trade, Fidelity, and others have been around far longer but Robinhood somehow became household name

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