Seducing newbies and selling data, how the "wolf of Wall Street" harvested US retail investors

Just after midnight on Friday, July 31, Todd Capital Options Community, a $20-a-month subscription channel on the Slack community popular with thousands of options newbies, was buzzing. Unemployment in the United States soared during the epidemic, and the government was desperately trying to prevent the economy from collapsing. But the channel members were partying all night, and it was no exaggeration to say that this was 1999, the height of trading before the dot-com bubble burst in March 2000.


Despite the epidemic, Amazon, Apple, Facebook and Google all released eye-popping financial results.At a time when U.S. GDP is rapidly declining at a rate of 33%, the total revenue of these technology companies in the quarter reached a staggering {100} million US dollars and profits reached {200} million US dollars.For weeks, young members of the Todd Capital Options Community subscription channel have been using the mobile end trading app Robinhood to buy speculative call options. Now they are ready to cash out.

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"Really, there's nothing stopping me from selling Amazon stock options tomorrow. I don't care what happens... I have it all. Let's pray," said a user named JG. As dawn approached, user NBA Young Bull announced: "Good morning, future millionaires... is it half past nine?"

Apple not only reported better-than-expected quarterly earnings, but also announced a 4:1 stock split, which attracted more retail investors to buy Apple shares and turned the mood of many investors from excitement to frenzy. After the market opened at 9:30 a.m. on Friday, the Apple and Amazon call options held by these market newbies, like a 777 from a Las Vegas slot machine, pushed the combined market value of the two tech giants to trillions of dollars.

On Friday trading day and throughout the weekend, there was a torrent of posts from enthusiastic Robinhood traders. On Monday, 8 3, the Nasdaq index reached a new high.

So many newbies.

This is the Robinhood-style stock market. Since the beginning of this year, the US economy has been on the verge of collapse under the weight of the epidemic. Millions of novices with $1 stimulus checks and nothing to do have started trading through Robinhood, a free stock trading app emerging in Silicon Valley. Robinhood is owned by Vladimir Tenev, 33 years old(Vladimir Tenev)And 35 year old Baiju ButtBaiju BhattFounded in 2013, it is a stock trading platform that is convenient to use on mobile devices.


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