Shares of Robinhood Markets Inc. HOOD crashed on Wednesday amid high crypto volatility.
On CNBC's "Options Action," Dennis Davitt of Millbank Dartmoor Portsmouth said trading resembles “what we saw in the financial crisis, not like the dotcom crisis.” Someone bought a $4 put on Robinhood Markets, which is an $8 stock, he added.
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There was a buyer of 87,000 of the January 2023, 4-puts at an average price of 14 cents per contract, Davitt mentioned. The trader expects shares of Robinhood Markets to decline by at least 54% by January expiration, he added.
Similar trades were seen in Silvergate Capital SI, MicroStrategy Inc. MSTR and Coinbase Global Inc. COIN, Davitt stated.
HOOD Price Action: Shares of Robinhood Markets declined by 13.76% to close at $8.40 on Wednesday.
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