Robinhood (HOOD) shares have surged 65% since writing the name up on 1/11/24 highlighting massive long-term options positioning, all to the bullish side which is exactly what we like to see and made members a lot of profits.

Here is what we wrote on 1/11:

Robinhood (HOOD) options flows have been extremely bullish since mid-December and includes 18,000 January 2026 $10 calls adding to open interest from 1/8 buys that cost nearly $10M after 13K bought in December. HOOD has also seen 16,000 January 2026 $12 calls bought to open, a buyer of 10,000 January 2025 $12 calls on 12/6, opening seller of 10,000 June $10 puts on 12/6 and 9000 June $16 calls bought on 12/20. In November, traders bought size February $8 and $9 calls and the May $12 calls bought 5000X on 12/5 while a 12/13 trade sold 4000 January 2026 $8 puts to open. HOOD has been a disaster since its IPO in 2021 but with this kind of flow the name is worth a look with a fresh set of eyes. HOOD has a massive long-term volume node of resistance at $13.30, above would measure a move to above $20. That resistance lines up closely with upper monthly value and the recent highs. AVWAP from its IPO is at $16.87 and monthly VPOC $11.55 holding as support in 2024. Robinhood pioneered commission-free stock trading with no account minimums and offers a brokerage with easy access and a technology-rich mobile app. HOOD also allows fractional trading, recurring investments and access to crypto markets and IPOs. HOOD has a $10.5B market cap and trades 8.9X FY24 expected EBITDA, 2.5X EV/Sales and 1.57X Cash. HOOD revenues are seen rising 10% in 2024 following a 35.6% jump in 2023 while a return to EPS profitability is also seen while EBITDA expected to jump 16%. Robinhood share on trading is continuing to increase and the company continues to focus on product enhancements for active traders. HOOD also has plans to expand globally from the US/UK. HOOD has been cutting costs but will also face net interest income headwinds from rate cuts and that accounting for 50% of revenues in 2023.  Analysts have an average target of $12 with short interest at 5.2% of the float. Citi opened a negative catalyst watch this week ahead of the release of the SEC market structure rules which impacts cash equities, though only 6% of HOOD’s revenues, seeing potential headline risk given its PFOF model.