Trading volume rose month over month, but tech rotation has HOOD lower
Robinhood Markets Inc (NASDAQ:HOOD) stock is struggling amid an extended tech sector rotation, last seen down 0.1% to trade at $121.39. The move lower comes even after the trading platform reported a 34% rise in equity trading volume and a nearly 22% pop in option contracts trading volume from September to October. The company also announced cash deliveries for a fee.
HOOD is now down 15.5% this quarter alone and 21.1% off its Oct. 6 record high of $153.86. The shares are testing their 100-day moving average today, but are still up 277% year over year. That double-top formation, per the chart below, could be an ominous tell though.
Options traders have been betting bearishly for some time now. The stock's 50-day put/call volume ratio over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 93% of readings from the past year. Echoing this, HOOD's Schaeffer's put/call open interest ratio (SOIR) stands in the 94th percentile of annual readings.
The stock also tends to outperform options traders' volatility expectations, per its Schaeffer's Volatility Scorecard (SVS) of 83 out of 100.