Quantchabot has detected a new Covered Put trade opportunity for ROBINHOOD MARKETS INC (HOOD) for the 2-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HOOD was recently trading at $35.95 and has an implied volatility of 78.66% for this period. Based on an analysis of the options available for HOOD expiring on 2-May-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $26.98-$36.17 at expiration. In this scenario, the average linear return for the trade would be 15.58%.
Big -7.63% Change: After closing the last trading session at $38.92, ROBINHOOD MARKETS INC opened today at $38.27 and has reached a low of $35.95.
Trade approach: A movement as big as -7.63% is a significantly bearish indicator, so this trade is designed to be profitable if HOOD maintains its current direction and does not revert back to pricing on the bullish side of $35.95 on 2-May-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if ROBINHOOD MARKETS INC closes at or below $36.27 on 2-May-2025. Based on our risk-neutral analysis, there is a 50.37% 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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