Robinhood will allow U.S. citizens to trade election contracts
Shares of Robinhood Markets Inc (NASDAQ:HOOD) are up 3.2% at $27.93 at last glance, and trading at nearly three-year highs. The trading platform today announced that users, if meeting certain criteria such as U.S. citizenship, can trade contracts to bet on the U.S. presidential election.
On the charts, Robinhood stock is above all moving averages between the 20- and 320-day trendlines, with recent support from the former. Now trading at its highest levels since Nov. 2021, the equity is up 118.8%.
Though calls are winning out on absolute basis in the options pits, with 59,000 exchanged so far, the 28,000 puts across the tape represent double the amount typically seen at this point. The weekly 11/1 28-strike call is the most popular contract, followed by the November 27 call.
Robinhood is also gearing up for quarterly earnings, due out after the close on Wednesday, Oct. 30. The stock has a split post-earnings history, moving higher after four of its last eight reports, including a 3.6% rise in August. This time around, the options pits are pricing in a next-day swing of 12.1%, regardless of direction, which is larger than the 7.4% move the stock has averaged over the past two years.