Robinhood Markets Inc (NASDAQ:HOOD) stock was last seen 0.6% higher to trade at $103.53, while sporting a 409.6% year-over-year lead. The shares have pulled back from their Aug. 12, record high of $117.70, but the $100 level has been providing support since late July. It looks like a historically bullish signal currently flashing might help the equity to more record highs soon enough, though.
According to Schaeffer's Senior Quantitative Analyst Rocky White, HOOD is within 0.75 of the 50-day trendline's 20-day average true range (ATR), after spending at least 80% of the last 10 days, and 80% of the last two months above it. This has happened eight other times in the past three years, after which the equity was higher one month later 63% of the time, averaging a 16% gain. A move of similar magnitude from the equity's current perch would put it at $120.09 -- a new all-time peak.
Short-term options traders lean overwhelmingly bearish toward HOOD. This is per its Schaeffer's put/call open interest ratio (SOIR), which ranks in the 98th percentile of annual readings. An unwinding of this pessimism could create even more tailwinds for Robinhood stock.
Now looks like an excellent opportunity to bet on the equity's next moves, as its Schaeffer’s Volatility Scorecard (SVS) ranks at 85 out of 100. In other words, HOOD has tended to exceed volatility expectations in the past year -- a boon for options buyers.
