There is plenty of room for upgrades amongst the brokerage bunch
Subscribers to Schaeffer's Weekend Trader options recommendation service received this HOOD commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
Shares of trading platform Robinhood Markets Inc (NASDAQ:HOOD) hit a new 52-week high this past week. The stock pushed above $37, the site of a 38.2% Fibonacci retracement of its 2021 post-initial public offering (IPO) high and 2022 lows. In November the equity attempted to push above $38 and failed. With the shares now above this level after a pause here, now is the time to initiate a call trade with the underlying above this resistance level.
Currently seven covering brokerage firms that are following the stock still sport a tepid "hold" or "strong sell," meaning there is plenty of room for upgrades, should this bearish sentiment begin to unwind. There has also been a decent mix of call and put additions the past few days, suggesting there is nothing euphoric left in the options market, in relation to the move above the aforementioned resistance levels.
Our recommended February call has a leverage ratio of 3.8 and will double on an 26.7% rise in the underlying security.