Options News
Robinhood (HOOD) Call Options Explode as Crypto Expansion Accelerates
Upside option positions are turning massive profits in Robinhood Markets, Inc. (HOOD). On Jun. 9, Market Rebellion’s Unusual Activity Service found the purchase of 11,000 July 3rd 85 call options bought for $1.00-$1.01 per contract, with HOOD shares trading at $71.38-$71.41, exceeding the strike’s previous open interest of 10,854 contracts. The timing proved particularly fortuitous, coming […]
Upside option positions are turning massive profits in Robinhood Markets, Inc. (HOOD).
On Jun. 9, Market Rebellion’s Unusual Activity Service found the purchase of 11,000 July 3rd 85 call options bought for $1.00-$1.01 per contract, with HOOD shares trading at $71.38-$71.41, exceeding the strike’s previous open interest of 10,854 contracts.
The timing proved particularly fortuitous, coming amid a series of groundbreaking crypto announcements that would transform Robinhood’s digital asset capabilities.
Those July 3rd 85 calls have traded as high as $14.27 today with the stock at $99.01, delivering impressive returns of approximately 1,313.86% to 1,327.00% from the initial entry price range of $1.00 to $1.01. Meanwhile, HOOD shares have gained approximately 38.73% from their initial trading level around $71.38, demonstrating how options can deliver significantly amplified returns compared to simply owning the underlying stock.
This performance illustrates the power of options leverage when the directional thesis proves correct, though it’s important to note that this same leverage can work against traders when market moves go in the opposite direction.
The explosive move in HOOD comes as the fintech giant benefits from a cascade of major crypto-related developments that emerged after the option activity was spotted. Most significantly, Robinhood completed its $200 million acquisition of Bitstamp on June 2nd, adding over 50 global crypto licenses and institutional client capabilities to its platform. This transformational deal positioned Robinhood as a major player in global crypto markets beyond just retail trading.
The momentum accelerated dramatically with Robinhood’s “To Catch a Token” keynote announcement on June 30th, where the company unveiled its most ambitious crypto expansion yet. The company announced the launch of tokenized stocks for European users, allowing trading of over 200 U.S. stocks and ETFs including NVIDIA, Apple, and Microsoft through blockchain technology. Even more significantly, Robinhood revealed it is developing its own Ethereum Layer 2 blockchain based on Arbitrum, marking a major evolution from crypto broker to blockchain infrastructure provider.
Additional catalysts included the introduction of crypto staking services for U.S. investors starting with Ethereum, and the launch of perpetual futures trading. The company also began a Bitcoin sweepstakes promotion offering customers the chance to win one of five Bitcoin prizes for deposits made between June 17-July 7, further driving engagement and deposits.
Robinhood Markets, Inc. specializes in commission-free trading through its mobile app and web platform, offering stocks, ETFs, options, and cryptocurrency trading. The company has rapidly expanded its crypto offerings and now serves as both a retail trading platform and institutional crypto infrastructure provider following the Bitstamp acquisition. Robinhood’s focus on democratizing finance through technology has made it a leader in the retail trading revolution.
HOOD was last trading at $92.16, down 1.56% on the day.