Schaeffer's Top Stock Picks for '25

Robinhood Stock Rallies on Closed SEC Investigation

Options bulls already favor HOOD

Digital Content Manager
Feb 24, 2025 at 9:10 AM
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Robinhood Markets Inc (NASDAQ:HOOD) revealed earlier today that the U.S. Securities and Exchange Commission (SEC) is ending an investigation of its crypto unit and taking no action. This follows the SEC's decision to drop its its lawsuit against Coinbase Global (COIN) last week. 

HOOD is up 2.4% to trade at $52.83 ahead of the open, set to snap a four-day losing streak after recording its worst daily loss since December on Friday. Despite also being fresh off its first weekly loss in six, the equity isn't too far off its Feb. 13, three-year high of $62.09, and sports an impressive 269.4% year-over-year lead.
 
Options traders already lean bullish on Robinhood stock. This is per its 50-day call/put volume ratio of 3.31 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 98% of readings from the past year.
 
HOOD has consistently rewarded premium buyers in the past. The security's Schaeffer’s Volatility Scorecard (SVS) score of 84 suggests it tends to deliver larger-than-expected moves relative to the options market’s low volatility expectations.
 
 
 

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