Robinhood Markets, Inc. closed at 119.82 USD, up 9.12%.

Large options trades in HOOD were dominated by a bearish call spread that collected $315,000 in net credit via short September 2026 $122.00 calls against long $127.00 calls, firmly capping expected upside. A much smaller, $270,000 net debit bull call spread also appeared, buying $116.00 calls and selling $121.00 calls. Despite the stock’s sharp advance, the options block flow leaned clearly bearish, favoring premium sales over aggressive long positioning.

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Options Indicators

HOOD’s implied volatility is 67.16%, while its IV percentile stands at 35.06%, which places current option pricing in a broadly neutral historical range rather than an especially cheap or expensive extreme. At the same time, the IV/HV ratio of 0.74 suggests implied volatility is running below realized volatility, indicating the options market is not assigning an aggressive premium relative to the stock’s recent actual movement. The Call/Put volume ratio is 2.37, reflecting much heavier call-side trading volume, though such volume alone does not confirm bullish conviction when large bearish spreads dominate the block tape.

Large Trades

A bearish call spread collecting $315,000 in net credit was one of the standout complex trades, built by selling the September 25, 2026 $122.00 call and buying the September 25, 2026 $127.00 call for 2,330 contracts each. With both calls out of the money versus the $119.82 reference stock price, this spread reflects a moderately bearish to capped-neutral stance, where the trader is positioning for HOOD to stay below $122.00 or at least not rally meaningfully through that level by expiration. The net credit structure points to a premium-collection strategy, expressing the view that upside is limited while defining risk with the higher-strike long call.

A bullish call spread opened for a $270,000 net debit was the other featured large trade, consisting of a purchase of the September 25, 2026 $116.00 call and a sale of the September 25, 2026 $121.00 call for 2,000 contracts each. The long $116.00 call is in the money and the short $121.00 call is out of the money relative to the $119.82 stock price, making this a directional upside bet with capped profit potential. The debit paid shows the trader was willing to spend premium for a controlled-risk bullish position, likely targeting a moderate move higher toward or above $121.00 rather than an unlimited upside breakout.

Overall, the large-trade flow leans clearly bearish. Although there was one constructive bull call spread showing some appetite for upside exposure, the broader block activity was dominated by bearish positioning, including the prominent short call flow and the bearish call spread premium sale. That mix suggests institutional traders are generally skeptical about near-to-medium-term upside, favoring either capped-rally scenarios or outright downside-leaning exposure rather than positioning for a strong sustained advance in HOOD.

Strategy Reference

For a defined-risk bearish stance, traders could consider selling a call spread such as the September 2026 $125.00/$130.00 call spread, collecting premium while accepting limited upside exposure. Alternatively, a cash-secured put at the $105.00 strike may suit those seeking entry with a lower assignment probability given the elevated realized volatility.