groot_trades
12-05

$Robinhood(HOOD)$  Delta hedge at 81%.. Analyst upgrades this morning from $42 to $60

Robinhood Markets Inc. shares jumped 9.3% in premarket trading. To fully re-hedge all open option positions coming into the day, 15.8 million shares, or 81% of the daily average, will need to trade.

Stock traded at $43.70 as of 8:17 a.m. New York time on volume of 1.5 million shares

15.8 million shares required to hedge delta at premarket price of $43.70 vs. 5-day average of 19.6 million shares

14.7 million shares to re-hedge calls, current notional value $643.7 million

1.05 million shares to re-hedge puts, current notional value $46 million

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Comments

  • BTC_Sandy
    12-06
    BTC_Sandy

    What does that mean? Short squeeze coming? but why it dropped yesterday

    • groot_trades: 
      As the price moved higher, shares will have to be bought to cover as calls will be in the money. If shares are not bought then the calls sold will require higher margin to cover if the calls remain in the money.
  • groot_trades
    12-09
    groot_trades
    I would not be surprised. Some of the stocks are reaching their 2021 high (tesla, pltr) and Hood has equal high at 60 and all time high at 80. Crypto is positive and will jump as we get closer to Jan when Trump is to take office.
  • chizzoo
    12-06
    chizzoo
    That's quite a jump! Do you think the upgrade will sustain the momentum throughout the day?
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