Robinhood (HOOD) has been on a crazy run, and it’s up $2.65 on the day as I write. I feel like it’s hitting resistance at $76.75, plus the Relative Strength Index (RSI) is up well above the high range of 70; it’s at 80. I do not see this stock going much higher in the coming week.
With the stock at $74.75 I sold 3 HOOD $79 Naked Calls with the Expiration Date of tomorrow. I received a premium of 55¢ for $165. Not bad for a 1 day trade.
Sell to Open 3 HOOD 6/6/25 $79.00 C @ 55¢ (+$165)
I am placing a Good til Cancel (GTC) Buy/Stop order at $78.50. If the stock continues to move up and approaches my Strike Price of $79 my account will automatically buy 300 shares at $78.50 to cover my Naked Call. This is for protection which you should consider when trading Naked Calls. Once I feel I’m safe from getting assigned I will remove the Buy/Stop order tomorrow afternoon.
Successful trading,
Steve
The Options Coach