Quantchabot has detected a new Bull Call Spread trade opportunity for ROBINHOOD MARKETS INC (HOOD) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HOOD was recently trading at $38.92 and has an implied volatility of 80.45% for this period. Based on an analysis of the options available for HOOD expiring on 25-Apr-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $39.13-$51.84 at expiration. In this scenario, the average linear return for the trade would be 10.50%.
Big 7.04% Change: After closing the last trading session at $36.36, ROBINHOOD MARKETS INC opened today at $38.99 and has reached a high of $39.67.
Trade approach: A movement as big as 7.04% is a significantly 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 $38.92 on 25-Apr-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 $36.10 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 61.31% 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.
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