Shares of Robinhood Markets Inc. (NASDAQ: HOOD) are down more than 5% after the stock was denied entry into the S&P 500 index. The stock had rallied more than 30% in the month leading up to the decision on hopes (and likely expectations) that HOOD stock would be added to the index as it rebalanced.
The options chain for Robinhood showed bullish sentiment with a high concentration of upside calls. However, that sentiment is flipping, and traders now believe the stock could be headed to around $57 by June 13. That's about 10% above the stock’s 50-day simple moving average.
