Should you also buy caps of cap?

For the first time in its history, an initiate by Robinhood (Hood) has just made an optimistic bet – and merchants on social networks are careful. While a director sells millions, another has just made a historic purchase. What’s going on inside the company and should you look at the hood stock now?

Let’s decompose it.

Director Christopher Payne has just bought 2 million dollars in Hood shares, according to a recent SEC deposit – marking the very first initiate purchase for Robinhood since the company has become public. This is particularly notable because the purchase of initiates is often considered as a strong signal of trust in the future of the company.

• Initiate sales are common – they can occur for tax reasons, diversification or a number of other motivations.

• But initiate purchases – especially this size – generally mean one thing: initiates think that the stock is undervalued and ready to increase.

On the other hand, director Baiju Bhatt – one of the co -founders of Robinhood – sold more than $ 31 million in shares during the same period. This could raise eyebrows, but it does not necessarily mean problems.

It is not uncommon for the first founders to reduce their exhibition over time. And given the 200% Robinhood rally + in the past year, many long -term holders simply lock the gains.

Robinhood was recently snubbed to join the S&P 500 index ($ SPX), while the Coinbase competitor (Coin) cut. This caused a slight decrease in the price on the news in June. However, the company advances the expansion of the crypto thanks to its acquisition of Bitstamp and Wonderfi – and the investors have not stopped buying.

In fact, Hood’s actions recently reached heights of all time, supported by a bullish feeling in the cryptography and fintech sectors.

The Gamma exhibition tool in Barchart for Hood shows a positive gamma point at $ 80 and a major call wall at $ 85:

This indicates an activity of aggressive options and a potential increase if the hood crosses these levels – but traders should expect a certain resistance.