Pair Trade Opportunity: Long Robinhood (HOOD) & Short Schwab (SCHW)
16 days ago
Scott Nation
"That could have been one of the greatest pure alpha pair trades I've ever seen. If you had put this trade on in '23, I want to be long Robin Hood, short Schwab. Holy cow, if this touches one, go the other way."
The speaker outlines an actionable pair trade based on the converging market caps of Robinhood and Charles Schwab. He notes that Schwab's market cap has compressed from as high as 22.5 times the size of Robinhood's to just 1.3 times, suggesting a potential reversion. The recommendation is to establish a long position in Robinhood (ticker HOOD) and a short position in Schwab (ticker SCHW) as the ratio normalizes further.
Scores
Alpha Potential
9.0/10
Novelty
8.0/10
Credibility
8.0/10
Timeliness
9.0/10
Overall
8.0/10
Sentiment
Bullish
Conviction
High
Tier
Trade Call
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Episode Information
Episode:
Retail Investors Just Plowed $100 Billion Into Stocks. THIS MONTH. | TCAF 212
Source:The Compound and Friends
Published:
October 10, 2025
Idea Type:
Stock Idea