Robinhood stock price surges as options trading begins
Small investors use Robinhood Markets Inc. to send stocks to the moon. Now they are setting their sights on the trading application itself.
Investors crowded into Robinhood options on their first day of trading on Wednesday, which helped push the stock up sharply. Robinhood, which debuted on the Nasdaq last week at $ 38 a share, closed at $ 70.39 on Wednesday, an 85% jump from its initial public offering price.
The stock climbed to $ 85 earlier in the session, nearly double its Tuesday closing price of $ 46.80 per share.
This is a remarkable turnaround for a company that had a disappointing start to negotiations last week. On the day trading started, Robinhood fell more than 10% during the day, before closing below $ 35 per share.
This week, the sentiment surrounding the action has reversed. More than 172 million Robinhood shares changed hands on Wednesday, according to preliminary FactSet data shortly after the close of trading, topping 102.5 million on the company’s first day of trading. This made Robinhood the second most actively traded stock in the U.S. market, according to Dow Jones Market Data, based on an analysis of companies trading above $ 2 on the New York Stock Exchange or Nasdaq.