Shares of Robinhood climbed into positive territory for the year following a significant rally on Thursday, bringing the stock close to a fresh year-to-date high. Concurrently, software company Palantir experienced heightened options activity driven by its own sharp upward movement, becoming one of the top ten most traded single-stock options with volume nearly double its daily average. Traders are purchasing calls at a two-to-one ratio over puts, while put selling exceeds buying.
The surge in activity is largely attributed to anticipation surrounding Elon Musk’s upcoming Tesla Cybercab event in Austin, Texas. Options trading for both Tesla and SpaceX reflects similar momentum, with call purchases doubling put purchases. SpaceX shares have recently reclaimed the $150 mark, a level last held in early July, while implied volatility has dropped significantly. The stock’s current 30-day implied volatility sits in the fourth percentile, roughly half of its historical average since its public listing on June 12.
Charles Moon, a momentum trading specialist at Prosper Trading Academy, noted that strong Bitcoin performance has benefited Robinhood, while developments around Snowflake served as a catalyst for Palantir. “Retail’s getting aggressive because all they need is a reason to be. It’s a good sign,” Moon said.
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