When we made our recommendation, HOOD boasted ample support on the charts
Subscribers to our monthly Option Advisor service doubled their money with our Robinhood Markets Inc (NASDAQ:HOOD) August 18 call recommendation, made on May 24. Below, we'll breakdown the reasons for our bullish recommendation, as well as what caused the spike in price.
At the time, shares of the stock trading platform had just broke out above the $19 level, which is half its initial public offering (IPO) price and coincides with a 50% year-to-date gain. A retest of that level presented a good entry point for a long position on HOOD.
There was also potential for the stock to breakout from a cup-and-handle pattern after it pulled back to its 10-day moving average. In the time since our recommendation, multiple catalysts helped Robinhood stock bounce higher on the charts.
For one, the firm unveiled a maiden stock buyback plan of $1 billion. The company then introduced a crypto trading API, and announced its $200 million cash acquisition of global crypto exchange Bitstamp.
These catalysts helped HOOD extend its one-month gain to 42.5%. What's more, the security's year-to-date lead jumped to 89.1%. A reignited interest in meme stocks -- kicked off by GameStop's (GME) surge -- is today helping Robinhood stock trade at level not seen since its pandemic highs. The security was last seen up 3.6% at $24.06 for its highest mark since the end of 2021, allowing our subscribers to collect their 100% gain.
