Robinhood - Pre-Earnings Game Plan
$HOOD
HOOD 0.00%↑ reports Wednesday. I’ve written about it several times, as it became a core holding for me earlier this year. That write-up is here -
Given the markets behavior over the past week, its probably best to mentally prepare for the worst.
We’ve got an almost perfect intersection of a rising 200 day moving average and the AVWAP from $HOOD’s IPO (the average price shareholders are in if they purchased every day since).
This is a perfect risk management level to me. Below $17, I don’t want to be in HOOD 0.00%↑ any longer. The August 9th $16 puts in HOOD 0.00%↑ were around $0.47 on Friday. Put another way, I can hedge my shares against a move through my risk management level for about 2.6% the value of those shares ($47/$1,788).
An affordable insurance policy that will put my mind at ease.