Quantchabot has detected a new Bull Call Spread trade opportunity for ROBINHOOD MARKETS INC (HOOD) for the 7-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HOOD was recently trading at $53.55 and has an implied volatility of 58.88% for this period. Based on an analysis of the options available for HOOD expiring on 7-Feb-2025, there is a 35.09% likelihood that the underlying will close within the analyzed range of $53.57-$56.37 at expiration. In this scenario, the average linear return for the trade would be 10.07%.
52 week high: ROBINHOOD MARKETS INC recently reached a new 52-week high at $53.66. HOOD had traded in the range $10.51-$53.51 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if HOOD maintains its current direction and does not revert back to pricing on the bearish side of $53.55 on 7-Feb-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if ROBINHOOD MARKETS INC closes at or above $53.10 on 7-Feb-2025. Based on our risk-neutral analysis, there is a 57.06% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.
Leave a Reply
You must be logged in to post a comment.