Robinhood Stock Jumps 11% on Options and Gold Card Growth

Robinhood Markets Inc. (HOOD) shares surged more than 11% on May 29, 2026, propelled by first-quarter earnings that revealed significant growth in its options trading business and the successful launch of its Gold Card. The brokerage reported a 37% year-over-year increase in options traded notional value, reaching $451 billion. This performance occurred as Bitcoin, a traditional driver of sentiment for the platform, traded at $74,056, underscoring a diversification of its revenue streams. The gains reflect a pivotal quarter for the fintech firm as it expands its product ecosystem beyond cryptocurrency volatility.

Context — [why this matters now]

Robinhood's rally marks a departure from its historical correlation with cryptocurrency market cycles. Previously, sharp moves in HOOD stock were frequently tied to Bitcoin's price action, given the platform's significant crypto trading volumes. The last comparable earnings-driven surge occurred on February 14, 2024, when shares gained over 13% after the company reported its first quarterly net income.

The current macro backdrop features a stabilizing interest rate environment, with the market anticipating potential Federal Reserve easing later in the year. This has improved sentiment toward growth-oriented fintech stocks. The immediate catalyst for the May 29 move was the earnings report surpassing analyst expectations for revenue and earnings per share, with management highlighting accelerated user adoption of newer products.

The key change triggering the event is the maturation of Robinhood's business model. The company has systematically expanded its offerings to include retirement accounts, advanced options tools, and a credit card, reducing its reliance on transaction-based revenue from a single asset class. This quarter's results provided concrete evidence that this strategy is gaining traction with its user base.

Data — [what the numbers show]

Robinhood's first-quarter financial results contained several key metrics demonstrating its growth. Net revenue reached $711 million, a 29% increase compared to the same quarter last year. Transaction-based revenue specifically from options trading grew to $233 million. The platform's funded customers increased by 110,000 sequentially, bringing the total to 24.2 million.

A comparison of key revenue drivers illustrates the shift in business mix. While crypto trading revenue was $98 million, options revenue was more than double that figure. Assets under custody grew to $135 billion, supported by net deposits of $17.2 billion over the trailing twelve months. The company's monthly active users held steady at approximately 12.9 million.

The stock's performance significantly outpaces broader market indices. HOOD's year-to-date gain is now over 45%, compared to the S&P 500's gain of approximately 8% for the same period. Trading volume for HOOD shares on the day of the earnings announcement was more than 45 million shares, well above its 30-day average volume of 18 million.

Analysis — [what it means for markets / sectors / tickers]

The rally in Robinhood signals a positive reassessment of the retail brokerage sector's ability to monetize a diversified product set. This could benefit peers like Charles Schwab (SCHW) and Interactive Brokers (IBKR), which have also invested heavily in options and advisory platforms, as it validates the broader trend of ecosystem expansion. Traders may look for catch-up moves in these names.

A primary risk to the bullish thesis is the continued sensitivity of Robinhood's payment for order flow (PFOF) revenue model to potential regulatory scrutiny. Any renewed legislative focus on the practice could dampen investor enthusiasm. The concentration of trading activity among a small cohort of highly active users also presents a durability risk for the reported metrics.

Positioning data indicates that short interest in HOOD had been elevated prior to the earnings report, potentially contributing to the sharp upward move through a short squeeze. Flow has been heavily skewed towards call options, with open interest increasing at the $25 and $30 strike prices for upcoming expirations. This suggests options traders are positioning for further near-term gains.

Outlook — [what to watch next]

The next major catalyst for Robinhood stock will be its second-quarter earnings report, scheduled for late July 2026. Investors will scrutinize whether the growth in options and card adoption is sustainable or a one-time surge. The company's guidance for Q3 revenue will be a critical data point.

Key technical levels to monitor include the $24.50 zone, which now acts as near-term support following the breakout. A sustained move above $26 could open a path toward the 52-week high near $28. Conversely, a break below $23.50 would signal a failure of the post-earnings momentum.

Market participants should also watch for announcements related to the Robinhood Gold Card's national rollout and any new features added to the options trading interface. Regulatory filings from the Securities and Exchange Commission regarding market structure rules could also impact the entire retail brokerage sector.

Frequently Asked Questions

How does Robinhood make money from options trading?

Robinhood generates revenue from options trading primarily through payment for order flow (PFOF). Market-making firms pay Robinhood a fee for directing its customers' options orders to them for execution. The revenue is typically a fraction of a cent per contract traded. This model benefits from higher trading volumes and more complex multi-leg strategies, which is why the 37% growth in options notional value is a significant positive for the company's profitability.

What is the historical performance of HOOD stock after positive earnings?

Historically, HOOD stock has experienced heightened volatility around earnings announcements. Prior to this report, the stock moved an average of 9.5% in either direction on earnings day over the past eight quarters. However, sustained rallies following reports have been less common. The February 2024 earnings gap higher was largely maintained, while a positive reaction in August 2025 was erased within two weeks, highlighting the importance of follow-through buying after the initial pop.

What are the main risks of investing in Robinhood?

The primary risks include heavy dependence on capital markets activity, which is cyclical and can decline during bear markets or periods of low volatility. Regulatory risk is persistent, as changes to PFOF rules or cryptocurrency regulations could directly impair the business model. Competition is intense from both traditional brokers and new fintech apps, pressuring commission structures and customer acquisition costs. The stock's valuation also often reflects high growth expectations, leaving it vulnerable to corrections if growth slows.

Bottom Line

Robinhood's earnings-driven surge confirms its strategic shift toward a more durable, multi-product revenue model is gaining market validation.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.