A Closer Look at Robinhood Markets's Options Market Dynamics

Investors with a lot of money to spend have taken a bearish stance on Robinhood Markets 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 14 uncommon options trades for Robinhood Markets.

This isn't normal.

The overall sentiment of these big-money traders is split between 35% bullish and 64%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $83,671, and 12 are calls, for a total amount of $571,670.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $10.0 and $33.0 for Robinhood Markets, spanning the last three months.

Volume & Open Interest Trends

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Robinhood Markets's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Robinhood Markets's significant trades, within a strike price range of $10.0 to $33.0, over the past month.

Robinhood Markets 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

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.

Present Market Standing of Robinhood Markets

• With a volume of 1,625,753, the price of HOOD is up 0.61% at $18.08.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 23 days.

Expert Opinions on Robinhood Markets

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $19.4.

• Consistent in their evaluation, an analyst from JMP Securities keeps a Market Outperform rating on Robinhood Markets with a target price of $28.
• Consistent in their evaluation, an analyst from Barclays keeps a Underweight rating on Robinhood Markets with a target price of $16.
• An analyst from Goldman Sachs persists with their Neutral rating on Robinhood Markets, maintaining a target price of $20.
• Maintaining their stance, an analyst from Piper Sandler continues to hold a Neutral rating for Robinhood Markets, targeting a price of $17.
• An analyst from Citigroup downgraded its action to Sell with a price target of $16.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Robinhood Markets options trades with real-time alerts from Benzinga Pro.