Robinhood Soars to 52-Week High Amid Explosive Options Activity – What’s Fueling This Rally?

Summary
• Robinhood Markets (HOOD) surges 3.18% intraday to $117.23, hitting its 52-week high of $117.6999
• Turnover spikes to 7.79M shares, 1.04% of its float, amid record options volume
• Options chain shows 20 contracts with turnover exceeding 50K, including HOOX ETF up 5.05%
• RSI at 66.71 and MACD above signal line confirm bullish momentum

Robinhood’s stock is surging on a perfect storm of technical strength and options-driven volatility. With turnover hitting 7.79M shares and options volume surging across key strike prices, the stock is testing its 52-week high. The Defiance Daily Target 2X Long HOOD ETF (HOOX) is amplifying the move, up 5.05% as leveraged bulls bet on continuation. Traders are now parsing whether this is a breakout or a short-term spike.

Options Volatility and Technical Momentum Drive HOOD’s Rally
The surge in HOOD is driven by a confluence of technical indicators and options activity. The stock’s RSI (66.71) and MACD (5.48) signal strong near-term momentum, while Bollinger Bands show the price is near the upper band, indicating overbought conditions. Options data reveals aggressive call buying at the $117–$120 strike range, with contracts like HOOD20250815C117 (leverage ratio 53.07%) and HOOD20250815C118 (64.46%) seeing turnover of 1.39M and 770K shares, respectively. These contracts have implied volatility (IV) between 67%–70%, suggesting market participants expect continued volatility. The 5.05% jump in the HOOX ETF further amplifies the move, as leveraged ETFs often act as accelerants in high-momentum scenarios.

Capital Markets Sector Gains Momentum as Robinhood Surpasses Schwab’s Gains
The Capital Markets sector is rallying, with Robinhood outperforming sector leader The Charles Schwab Corporation (SCHW), which is up 0.88%. HOOD’s 3.18% gain contrasts with the sector’s 1.42% intraday return, highlighting its outperformance. This divergence suggests HOOD’s rally is driven by specific factors—namely, its options-driven volatility and leveraged ETF exposure—rather than broad sector trends. Schwab’s more muted performance underscores that HOOD’s move is idiosyncratic, tied to its retail-driven options frenzy.

Leveraged ETF and Call Options Signal High-Conviction Bullish Play
• 200-day average: $55.91 (well below current price)
• RSI: 66.71 (overbought but not extreme)
• MACD: 5.48 (above signal line 5.42)
• Bollinger Bands: Price at $117.23 (near upper band $113.73)

The technical setup is bullish, with HOOD trading above its 200-day average and RSI in overbought territory. The 5.05% surge in the Defiance Daily Target 2X Long HOOD ETF (HOOX) amplifies exposure for leveraged bulls. Key levels to watch: $117.70 (52-week high) and $114.55 (intraday low). A break above $117.70 could trigger a test of the $118–$120 resistance cluster.

Top Options Picks:
1. HOOD20250815C117
• Code: HOOD20250815C117
• Type: Call
• Strike Price: $117
• Expiration: 2025-08-15
• IV: 70.16% (high)
• LVR: 53.07% (high)
• Delta: 0.38 (moderate)
• Theta: -0.84 (high time decay)
• Gamma: 0.0455 (high sensitivity)
• Turnover: 1.39M (high liquidity)
• Payoff at 5% upside ($123.14): $6.14/share
• This contract offers high leverage and liquidity, ideal for capitalizing on a breakout above $117.70.

2. HOOD20250815C118
• Code: HOOD20250815C118
• Type: Call
• Strike Price: $118
• Expiration: 2025-08-15
• IV: 69.10% (high)
• LVR: 64.46% (very high)
• Delta: 0.34 (moderate)
• Theta: -0.77 (high time decay)
• Gamma: 0.0442 (high sensitivity)
• Turnover: 770K (high liquidity)
• Payoff at 5% upside ($123.14): $5.14/share
• This contract’s 64.46% leverage ratio makes it a high-conviction play for aggressive bulls.

Action Insight: Aggressive bulls should consider HOOD20250815C117 into a break above $117.70, while conservative traders may use HOOD20250815C118 for a leveraged bet on continued momentum.

Backtest Robinhood Markets Stock Performance
The 3% intraday surge in HOOD resulted in a 56.12% win rate over the following three days, with an average return of 1.19%. While the maximum return during the backtest period was 14.53%, the overall performance indicates moderate short-term gains following the intraday surge.

Breakout or Spike? Watch $117.70 and HOOX ETF for Clues
HOOD’s rally is a textbook case of technical momentum and options-driven volatility. The stock’s 3.18% gain, coupled with a 5.05% surge in the HOOX ETF, signals strong retail and institutional conviction. Key levels to monitor: $117.70 (52-week high) and $114.55 (intraday low). A close above $117.70 would validate the breakout, while a retest of $114.55 could trigger a pullback. Sector leader SCHW is up 0.88%, but HOOD’s outperformance suggests the move is idiosyncratic. Action: Aggressive bulls should target HOOD20250815C117 if $117.70 breaks, while conservative traders may use the HOOX ETF for leveraged exposure. Watch for a 5% upside move to $123.14 as a key test of sustainability.