Robinhood Stock Eyes 8th Consecutive Loss Before Earnings

Earnings season is showing no signs of slowing down, with one popular finance name almost ready to step into the confessional. More specifically, Robinhood Markets Inc (NASDAQ:HOOD) will report fourth-quarter results after the market close on Thursday, Feb. 12.

Historically, HOOD tends to underperform after earnings, finishing lower after five of its past eight reports, including a 10.8% drop in November. Over the past two years, the shares have averaged a swing of 8.6%, regardless of direction, with options traders pricing in a much larger-than-usual 16.5% swing this time around.

Robinhood stock has made its way onto the short sale restricted (SSR) list today, last seen down 10.7% at $72.03, pacing for its worst day on record amid a Bitcoin (BTC) selloff. The equity is also headed for its eighth-straight daily loss -- its longest losing streak since August 2023. So far in 2026, HOOD has backpedaled 35.4%.

Short interest fell 17.7% in the past two reporting periods. This accounts for 4.3% of the stock's available float, meaning it would take shorts less than two days to buy back their bearish bets. Downgrades appear to be overdue, too. Heading into today, 16 of the 22 analysts in coverage sport a "buy" or better rating.

Despite this negative price action, call traders are circling. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), HOOD's 10-day call/put volume ratio of 2.59 ranks higher than 72% readings from the last year.

Echoing this, short-term options traders are bullish. This is per HOOD's Schaeffer's put/call open interest ratio (SOIR) of 0.64, which sits in the 27th percentile of annual readings. In other words, an unwinding of this bullish sentiment unwind could trigger more headwinds.

Lastly, the stock's Schaeffer's Volatility Scorecard (SVS) comes in at 76 out of 100. This indicates HOOD has consistently realized higher volatility than its options have priced in.