Bitcoin Rally Props Up Robinhood Stock Before Earnings

Robinhood Markets Inc (NASDAQ:HOOD) stock was last up 4.4% at $17.15 as Wall Street rebounded from a sharp sell-off and Bitcoin (BTC) rose. The e-commerce platform is set to report second-quarter earnings after the closing bell tomorrow, with analysts expecting strong results thanks to a resurgence in crypto trading and meme stocks.

HOOD has a 33.2% upside year-to-date and is pulling back toward its 200-day moving average, which served as support in January and February. While the stock has cooled from its nearly three-year peak of $24.88 on July 17, it is now on track to snap a three-day losing streak.

HOOD 200 Days

The stock has finished lower in five of the last eight post-earnings sessions, including a 3.1% drop in May, but it also saw a 13% gain after the February report. Shares have averaged a 7.3% swing regardless of direction over the past two years, but this time around, options pits are pricing in a much bigger 18.8% move.

It’s worth noting that short-term options traders are pessimistic about Robinhood Markets stock, according to Schaeffer’s put/call open interest ratio (SOIR), which is in the 92nd percentile of annualized readings.