Robinhood Could Be Ready to Launch Single-Stock Perpetual Futures. Here’s Why That’s Bullish for HOOD Stock.
Robinhood (NASDAQ: HOOD) hasn’t announced any plans to launch single-stock perpetual futures on its platform yet, but there seems to be a lot of pent-up demand for them. In a recent Mizuho (NYSE: MFG) survey of over 600 active Robinhood users, 94% of respondents were willing to trade single-stock perpetual futures if they became available. Let’s see why that could be bullish for Robinhood’s stock — which has declined nearly 30% over the past 12 months.
In traditional investing, investors can buy options to either buy a stock (a call) or sell it (a put) at a fixed strike price with a set expiration date. As an option approaches its expiration date, its value declines because there is less time remaining for the stock to make a major move.
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Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.