Robinhood (HOOD) options traders are pricing in a sizable 9.59% move ahead of earnings, which equates to $8.00 per share or about a $7.2 billion swing. The $84 straddle is priced at about $8.15, using the $3.80 call and $4.35 put, while the $85 straddle is $8.22, using the $3.37 call and $4.85 put. As a result, traders are implying a post-earnings range of $75.70 to $91.70, based on current pricing.
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Looking at nearby strikes, the implied move looks fairly consistent. For example, the 83 strike has a combined call and put price of about $8.00, while the 86 strike comes in at roughly $8.21. This supports the idea that the market is pricing in a move of about $8 in either direction. In terms of activity, call volume is strongest around the 85 strike, with more than 3,300 contracts traded, while put volume is more concentrated at the 80 strike, with over 3,000 contracts.
That suggests that traders are active on both sides, although the downside protection appears especially noticeable below the current stock price. Overall, the options market is not pointing to a quiet earnings reaction for Robinhood. Instead, traders appear to be positioning for volatility. The balanced pricing across nearby strikes suggests the market is more focused on the size of the move than on the direction.
Is HOOD a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HOOD stock based on 14 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average HOOD price target of $106 per share implies 26.5% upside potential.
