HOOD Bear Call Credit Spread — 2026-11-20

HOOD (Robinhood Markets, Inc. - Class A Common Stock) shows bearish unusual options activity: $293K of buyer-initiated unusual put flow (100% put-dominant) detected across near-term expirations, with a peak vol/OI ratio of 0.3x on the 75 put. We fade this by SELLING premium on the other side: the trade profits from time decay as long as HOOD stays below $89 through expiration. IV rank is 67 (elevated) — rather than sell naked premium at this IV, this is defined as a bear call credit spread (short $89 / long $90) so max loss is capped. Sell the $89 / buy the $90 call bear call credit spread expiring 2026-11-20 (14 DTE) for a net credit of $0.21 ($21 per spread). Breakeven at $89.21; net delta 0.03.

Underlying: HOOD @ ~$80.13 | 2026-11-20 (14 DTE) | Net credit (entry): ~$21 per spread. Use limit orders at the mid or slightly better.

ENTRY: Sell the $89 / buy the $90 call credit spread expiring 2026-11-20 (14 DTE) as ONE order at a LIMIT of the mid or better — target credit $21 on a $1 -wide spread. IV rank 67 is elevated — premium is rich, a good backdrop to SELL; any vol contraction adds to the win. Don't leg in. Gamma: dealer gamma is NEGATIVE (vol-amplifying) — moves accelerate here, so defend one trigger EARLIER than usual and don't wait for the strike to go in-the-money; put wall (support) at $80; call wall (resistance) at $90. | TAKE PROFIT: Buy the spread back to LOCK IN gains at ~50% of the $21 max credit (close near $11 remaining). Also close on TIME: exit around 21 DTE regardless of P&L to sidestep the late-cycle gamma/pin risk near HOOD's short strike(s) — currently 14 DTE, so plan the exit 0 day(s) out. Defined risk — max loss $79. | IF TESTED: If HOOD tests the $89 short call (delta ~0.30) or the loss reaches ~$42 (≈2× credit), roll the WHOLE spread UP and OUT ~7–14 days for a net credit. Treat a close above the $90 call wall as the hard trigger to act (the resistance magnet has broken). If price blows past the $90 long call, the spread is at/near max loss ($79) — take it. Breakeven $89.21. | MAXIMIZE: Winning below $89? Let it decay toward 50%. To improve, roll the spread DOWN toward the money next cycle for a richer credit once most credit is banked, or sell a bull put spread below the market to convert into an iron condor and collect premium from both sides.