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 $47.85 and has an implied volatility of 72.94% for this period. Based on an analysis of the options available for HOOD expiring on 25-Apr-2025, there is a 35.39% likelihood that the underlying will close within the analyzed range of $47.86-$50.30 at expiration. In this scenario, the average linear return for the trade would be 10.15%.
Big 7.14% Change: After closing the last trading session at $44.66, ROBINHOOD MARKETS INC opened today at $45.09 and has reached a high of $48.13.
Trade approach: A movement as big as 7.14% 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 $47.85 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 $47.59 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 54.75% 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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