Robinhood Stock a Hit With Options Bulls Before SPX Debut

Robinhood Markets Inc (NASDAQ:HOOD) stock officially joined the S&P 500 Index (SPX) earlier today. The shares were last seen 0.8% lower to trade at $123.73, taking a breather from back from Friday's rally to a record high of $125.18. Comfortably above all long- and short-term trendlines, the security has also found an additional layer of support at $110 and sports a 445.4% year-over-year lead.

This positive price action hasn't gone unnoticed by options traders. Robinhood stock snuck into Senior Quantitative Analyst Rocky White's list of equities that drew the highest options volume in the past two weeks. In the last 10 sessions, HOOD attracted 3,606,188 calls and 1,786,261 puts, with the September 120 call standing out as the most popular contract within that time frame.

While calls outpace puts on an absolute basis, puts have been growing more popular than usual the last two weeks. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), HOOD's 10-day put/call volume ratio ranks higher than 94% of readings from the last year.

It's also worth mentioning that the equity has tended to outperform volatility expectations over the past year, as suggested by its Schaeffer's Volatility Scorecard (SVS) of 85 out of 100.