27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Investors with a lot of money to spend have taken a bearish 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 10 uncommon options trades for Robinhood Markets.
This isn't normal.
The overall sentiment of these big-money traders is split between 30% bullish and 70%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $70,880, and 8 are calls, for a total amount of $309,749.
Expected Price Movements
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $10.0 to $28.0 for Robinhood Markets during the past quarter.
Volume & Open Interest Trends
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Robinhood Markets's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Robinhood Markets's substantial trades, within a strike price spectrum from $10.0 to $28.0 over the preceding 30 days.
Robinhood Markets Option Volume And Open Interest Over Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| HOOD | CALL | TRADE | BULLISH | 01/17/25 | $5.4 | $5.05 | $5.4 | $15.00 | $54.0K | 17.8K | 100 |
| HOOD | CALL | TRADE | NEUTRAL | 01/17/25 | $4.8 | $4.7 | $4.75 | $17.00 | $47.5K | 11.1K | 105 |
| HOOD | CALL | SWEEP | BULLISH | 05/17/24 | $1.47 | $1.46 | $1.46 | $19.00 | $44.9K | 7.0K | 531 |
| HOOD | PUT | SWEEP | BEARISH | 04/12/24 | $10.2 | $10.1 | $10.2 | $28.00 | $44.8K | 4 | 44 |
| HOOD | CALL | SWEEP | BULLISH | 05/17/24 | $1.85 | $1.84 | $1.84 | $18.00 | $39.7K | 9.9K | 441 |
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.
After a thorough review of the options trading surrounding Robinhood Markets, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of Robinhood Markets
- Trading volume stands at 2,408,949, with HOOD's price down by -3.28%, positioned at $17.7.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 28 days.
What The Experts Say On Robinhood Markets
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $21.0.
- Consistent in their evaluation, an analyst from Deutsche Bank keeps a Hold rating on Robinhood Markets with a target price of $16.
- Consistent in their evaluation, an analyst from Barclays keeps a Underweight rating on Robinhood Markets with a target price of $16.
- An analyst from JMP Securities has revised its rating downward to Market Outperform, adjusting the price target to $25.
- Maintaining their stance, an analyst from JMP Securities continues to hold a Market Outperform rating for Robinhood Markets, targeting a price of $28.
- Maintaining their stance, an analyst from Mizuho continues to hold a Buy rating for Robinhood Markets, targeting a price of $20.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Robinhood Markets with Benzinga Pro for real-time alerts.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!