HOOD Jumps 14.34% as Sep-25 115 Calls Lead Options Surge—Record 43,638 Contracts Traded Amid S&P 500 Index News
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Options Volume Hits Unprecedented Levels on Sep-25 115 Calls—What’s Behind the Surge?
Robinhood Markets (HOOD) exploded higher by 14.34%, trading at $115.77 as of 2:56 PM, after S&P Dow Jones Indices announced the company will be added to the S&P 500 on September 22, 2025. This news sent the options market into overdrive: the Sep-12-25 115 Call traded a remarkable 43,638 contracts—making up 6.5% of total options volume for the stock. For context, that's an options stampede that even HOOD hasn’t seen in months, underscoring just how momentous the index inclusion news has been for both stock and options traders.
Implied Volatility Collapses by 28.8%—Traders Bet on Event but Anticipate Less Future Turbulence
Options pricing tells a fascinating story today. The implied volatility (IV) for these calls plummeted from 76.4% to 54.4%—a 28.8% collapse in a single session. That’s highly unusual during a news-driven rally and signals a dramatic shift in traders' expectations: the anticipated price move may have been realized by the spike, so traders see less future uncertainty. While the options were active—with prices swinging from $1.70 up to $4.40 before settling around $3.70—the decline in IV hints that market makers see the stock's most dramatic move already in the rearview mirror, at least for now.
| Contract | Volume | VWAP Price | IV (Last) | IV % Chg | % Bought | % Large Trades |
|---|---|---|---|---|---|---|
| Sep-12-25 115 Call | 43,638 | $3.40 | 52.8% | -28.8% | 51.8% | 45% |
Trade Flow Balanced—Retail Leads Activity with Slight Buy-Side Bias
Order flow analysis paints a nuanced picture. Of the options volume, about 51.8% of trades were initiated on the buy side, compared to 48.2% sells. Retail traders led the charge with 55% of trades, while institutional or professional activity accounted for 45%. It’s a split suggesting both groups rushed in—perhaps looking for quick gains as HOOD enters the S&P 500, a move known to attract fund inflows and create temporary price dislocations.
Price Action Signals Volatility: Contracts Surge More Than 5x from Previous Close
The action in these calls was dizzying: the contract, which closed the prior day at just $0.70, opened at $2.11 and surged as high as $4.40 before recent prints at $3.70. With open interest on this strike sitting at 17,019 as of the prior session—a rise of 8,023 contracts overnight—today’s trading will likely see that number soar again. This all reflects an options market supercharged by index news, with both quick-moving traders and longer-term players battling for position.
Takeaway: Event-Driven Momentum Could Spark More Action
For traders, today's options frenzy tells you two things: First, major index changes create not just volatility in the stock price but enormous ripples through the derivatives market. Second, the collapsing implied volatility, despite record call volume, hints the market has already priced in much of the good news—so chasing momentum from here carries its own risks. With open interest updates due tomorrow, all eyes will be on whether these trades are the start of a new bullish build or just a fast-money exit. If you're tracking HOOD, now’s the time to watch how the index inclusion narrative and options market expectations evolve from here.
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