Investors with a lot of money to spend have taken a bullish stance on Robinhood Markets (NASDAQ:HOOD).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with HOOD, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 8 uncommon options trades for Robinhood Markets.
This isn't normal.
The overall sentiment of these big-money traders is split between 37% bullish and 37%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $243,331, and 6 are calls, for a total amount of $297,994.
What's The Price Target?
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $24.0 to $32.0 for Robinhood Markets over the recent three months.
Analyzing Volume & Open Interest
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Robinhood Markets's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Robinhood Markets's whale activity within a strike price range from $24.0 to $32.0 in the last 30 days.
Robinhood Markets Option Activity Analysis: Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| HOOD | PUT | SWEEP | BEARISH | 08/16/24 | $7.75 | $7.65 | $7.75 | $29.00 | $168.9K | 161 | 0 |
| HOOD | PUT | SWEEP | BEARISH | 08/16/24 | $6.7 | $6.6 | $6.7 | $28.00 | $74.3K | 149 | 0 |
| HOOD | CALL | TRADE | BULLISH | 01/16/26 | $6.75 | $6.6 | $6.7 | $25.00 | $67.0K | 24.2K | 209 |
| HOOD | CALL | TRADE | BEARISH | 01/16/26 | $6.75 | $6.6 | $6.66 | $25.00 | $66.6K | 24.2K | 109 |
| HOOD | CALL | TRADE | NEUTRAL | 01/16/26 | $6.65 | $6.45 | $6.55 | $25.00 | $65.5K | 24.2K | 8 |
About Robinhood Markets
Robinhood Markets Inc is creating a modern financial services platform. It designs its own products and services and delivers them through a single, app-based cloud platform supported by proprietary technology. Its vertically integrated platform has enabled the introduction of new products and services such as cryptocurrency trading, dividend reinvestment, fractional shares, recurring investments, and IPO Access. It earns transaction-based revenues from routing user orders for options, equities, and cryptocurrencies to market makers when a routed order is executed.
Having examined the options trading patterns of Robinhood Markets, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Where Is Robinhood Markets Standing Right Now?
- Trading volume stands at 961,157, with HOOD's price up by 0.55%, positioned at $21.98.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 41 days.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.