HOOD remains one of the best stocks on Wall Street in the last 12 months
Robinhood Markets Inc (NASDAQ:HOOD) stock is down 6.5% to trade at $69.95 today, after S&P Dow Jones Indices announced no new inclusions to the benchmark S&P 500 Index (SPX). The fintech company, along with AppLovin (APP), also lower out of the gate today, were both hoping to get the nod given their recent performance on the charts.
This is poised to be HOOD's worst single-session decline since March 26, but make no mistake; the stock has been a beast on the charts, hitting a record high of $77.80 on Friday. Year-over-year, the equity is up 218%. However, the steady uptrend -- with support in place at its 200-day moving average -- has the security's 14-Day Relative Strength Index (RSI) deep in "oversold" territory at 81. A price-target hike to $85 from $70 at Deutsche Bank reflects the longer-term analyst optimism even amid this short-term setback.
Short-term traders have been betting bearishly. The shares' Schaeffer's put/call open interest ratio (SOIR) of 0.74 is only two percentage points from an annual high. A further unwinding of this pessimism could keep the wind at the equity's back.
Robinhood has outperformed options traders' volatility expectations over the last 12 months, making this an excellent opportunity to weigh in with options. This is per its Schaeffer's Volatility Scorecard (SVS) of 84 out of 100.