Robinhood Markets Plummets 1.09% Amid Volatile Intraday Action: What's Fueling the Selloff?

Summary
• Robinhood (HOOD) trades at $116.47, down 1.09% from its $117.75 close
• Intraday range spans $114.05 to $118.57, reflecting sharp 4.7% volatility
• Turnover surges to 10.68 million shares, 1.44% of float
Robinhood Markets is under pressure as a 1.09% intraday decline punctuates a volatile session marked by a 4.7% price swing. With turnover hitting 1.44% of float and options volatility spiking, the brokerage sector faces renewed scrutiny as broader market dynamics and sector-specific pressures collide.

Brokerage Sector Turbulence Drives Robinhood's Intraday Slide
The selloff in HOOD aligns with broader brokerage sector jitters, as sector news highlights bearish options activity on overvalued stocks and Goldman Sachs' pivot toward gold miners. While no direct company-specific news triggered the move, the 31.67% implied volatility on the HOOD20250919C107 call option suggests heightened uncertainty. The stock's 1.09% decline follows a 0.17% gain in sector leader Charles Schwab (SCHW), indicating divergent investor sentiment within the brokerage space.

Brokerage Sector Mixed as Charles Schwab Holds Steady Amid HOOD's Slide
While Robinhood tumbles, Charles Schwab (SCHW) gains 0.17% as of 2:26 PM ET, reflecting divergent positioning within the brokerage sector. The 1.44% turnover rate in HOOD contrasts with SCHW's relative stability, suggesting investors are rotating out of high-beta brokerages toward more established players. This divergence underscores the sector's bifurcation between speculative retail-focused platforms and traditional institutional-focused firms.

Bearish Put Options and Key Technical Levels Define Strategic Entry Points
• 200-day MA: $64.64 (well below current price)
• 30-day MA: $108.51 (support level)
• RSI: 65.15 (neutral territory)
• MACD: 2.73 (bullish divergence from signal line 1.59)
• Bollinger Bands: Price at 116.47, 13.5% above middle band
HOOD's technicals suggest a short-term bearish bias despite long-term bullish patterns. Key resistance lies at the 30-day MA ($108.51) and 200-day MA ($64.64). The 65.15 RSI reading indicates neither overbought nor oversold conditions, while the MACD histogram's 1.14 expansion hints at lingering bullish momentum. Two put options stand out for bearish positioning:
• HOOD20250919P110 (Put, $110 strike, 9/19 expiry): IV 57.27%, leverage 89.95%, delta -0.219, theta -0.048, gamma 0.0298, turnover 370,372
• HOOD20250919P111 (Put, $111 strike, 9/19 expiry): IV 55.41%, leverage 80.10%, delta -0.246, theta -0.037, gamma 0.0328, turnover 57,922
These contracts offer high leverage (89.95%-80.10%) with moderate deltas (-0.219 to -0.246), ideal for capitalizing on a 5% downside move. The 57.27%-55.41% IV range suggests reasonable implied volatility, while high turnover (370k-57k) ensures liquidity. A 5% drop to $110.65 would yield $0.35 profit on the P110 put and $1.45 on the P111 put, assuming maximum payoff. Aggressive bears may consider the P110 put for higher leverage, while the P111 put offers better gamma sensitivity for price swings.

Backtest Robinhood Markets Stock Performance
Here are the completed event-study results for Robinhood Markets (HOOD) after each −1 % intraday plunge (open-to-low draw-down ≥ 1 %) from 1 Jan 2022 to 12 Sep 2025. You can review the interactive report in the module below.Key findings (snapshot):• 679 qualifying events identified. • Average cumulative excess return (30 trading days) ≈ +9.50 %. • Win-rate climbs steadily to ~57 % by the 30-day mark. • No single holding-period return shows statistical significance at the 95 % level, suggesting the post-plunge drift is modest and noisy.Assumptions & defaults:1. “Intraday plunge” defined as (Low – Open)/Open ≤ −1 %. Minute-level ticks were unavailable, so open-to-low draw-down was used as a practical proxy. 2. Daily close prices used for return calculations (price_type = close). 3. Analysis window automatically set to ±30 trading days by the engine; you may request different horizons if needed.Feel free to explore the interactive table/graph in the module—hover over any point to see detailed statistics.

Position for Volatility: HOOD's 52W Range and Key Resistance Levels Signal Strategic Entry Points
HOOD's 1.09% decline within a 4.7% intraday range highlights the stock's susceptibility to sector rotation and options-driven volatility. With the 30-day MA ($108.51) and 200-day MA ($64.64) defining critical support levels, traders should monitor the 52W low ($21.50) as a long-term floor. The 65.15 RSI and 2.73 MACD suggest potential for a rebound, but the 31.67% IV on the 9/19 call options indicates persistent uncertainty. Sector leader Charles Schwab's 0.17% gain underscores the brokerage sector's mixed dynamics. Investors should prioritize the HOOD20250919P110 put for high-leverage bearish exposure while watching the 30-day MA for potential reversal signals.