Investors in Robinhood Markets Inc (HOOD) saw new options trading commence today for May 2027 expiration, featuring notable put and call contracts. The $85.00 strike price put contract currently has a bid of $18.10, allowing sellers to achieve a cost basis of $66.90 per share if exercised, compared to the current trading price of $89.92, representing a potential 5% discount. The likelihood of this put contract expiring worthless is estimated at 69%, offering a potential 21.29% return on investment.
On the call side, the $100.00 strike price call contract has a bid of $20.60. If exercised, it could yield a total return of 34.12% if the shares are called away by expiration. This strike price reflects an 11% premium over the current market price, with a 40% chance of the contract expiring worthless, which would still allow investors to retain both shares and premiums. The implied volatility for the put and call options is currently at 68% and 67%, respectively.
