The analyst sees 43% upside from Monday’s closing price
Robinhood Markets (NASDAQ:HOOD) stock is up 0.8% to trade at $106.66 following an upgrade to "Overweight" from "Equal Weight" at Morgan Stanley. The firm also raised its price target to $150 from $124, citing Robinhood’s expanding product capabilities and growth opportunities.
The upgrade implies 43% upside from Monday’s close. Robinhood stock is fresh off a strong August, during which the shares surged 21%. Year to date, the equity is still down 6.7%.
Options bulls are targeting the stock today, too, with 38,000 calls exchanged so far -- double the amount typically seen at this point. The weekly 9/4 110-strike call is the most popular, with new positions opening there.
Options are extremely discounted right now. In fact, HOOD's Schaeffer's Volatility Index (SVI) of 56% stands higher than just 2% of all other readings from the past year, implying that near-term option traders are pricing in relatively low volatility expectations.