Option Focus | Robinhood’s $143,000 Bear Call Spread Sells 2,200 Contracts at the $145/$150 Strikes, Signaling Capped Upside and Premium Collection Despite a Small Bullish Put Sale

Option Witch
Sep 23

Robinhood ended the session with a closing price of $124.25, representing a 0.77% increase.

Block options activity showed a dominant bearish call spread worth $143,000, while a small $2,000 put sale added a minor bullish note. The large trades leaned cautiously negative, with premium collection through defined-risk structures remaining the prevailing theme.

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Options Indicators

Robinhood’s implied volatility stands at 68.36%, while its IV percentile is 39.04%, which places current option pricing in a neutral historical range rather than an especially cheap or expensive one. At the same time, the IV/HV ratio of 0.83 suggests implied volatility is running below realized volatility, indicating the options market is not embedding an aggressive premium relative to the stock’s recent actual movement.

The Call/Put volume ratio is 1.97.

Large Trades

A bearish call spread collecting a net credit of $143,000 was the standout large trade, with 2,200 contracts sold on the October 23, 2026 $145.00 call and 2,200 contracts bought on the October 23, 2026 $150.00 call. Both strikes sit out of the money versus the $124.25 reference stock price, and the structure clearly reflects a capped bearish view. By taking in premium upfront, the trader is expressing the belief that HOOD is unlikely to rally above the lower short-call strike in a sustained way, while the long $150.00 call limits upside risk. This is a premium-collection strategy with defined risk, consistent with a moderately bearish directional outlook rather than an outright aggressive downside bet.

A put sale worth $2,000 also appeared in the block flow, with 1,963 contracts sold on the October 2 $30.00 put. With the strike far below the current stock price, this is a deeply out-of-the-money bullish trade that suggests confidence HOOD will remain well above that level through expiration. Strategically, it looks like premium harvesting and reflects willingness to take on downside assignment risk only at a much lower price.

Overall, the large-trade flow leans bearish on HOOD. The dominant trade by far was the bear call spread, which signals expectations for upside to stay contained and shows traders favoring premium collection through a defined-risk bearish structure. Although there was a small bullish put sale in the tape, it was too minor to offset the much larger cautious-to-negative positioning, so the broader message from block activity is that institutional sentiment is tilted toward limited upside and a softer near-to-medium-term outlook.

Strategy Reference

For a low-assignment-probability credit strategy, consider selling the October 2 $90.00 put, or if aiming to avoid wide margin on a single short call, replace the $145/$150 bear call spread with a put credit spread at strikes such as $95/$90.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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