Robinhood (HOOD) is exactly the kind of underlying where selling volatility can make more sense than trying to predict the next headline-driven price swing — especially after a sharp pullback and with implied volatility still elevated. A short strangle — selling an out-of-the-money put and an out-of-the-money call in the same expiration — is fundamentally a bet that the stock will stay within a wide range through expiration, and/or implied volatility is overpriced versus what the stock ultimately realizes, so the combination of time decay and IV reverting to the mean may provide a tailwind. Crypto/options trading activity cooled materially after the market rolled over in early October 2025, and Robinhood’s Q4 results reflected…
