Unveiling the Robinhood Trade: An 18.8% Return in Just 6 Days
By Cash Flow University · · 2 min read
Discover how a Robinhood trade achieved an 18.8% return in just 6 days. Learn strategies and insights for successful trading.
Welcome to Cashflow University! I'm Stephen from CFU, and today I'll be sharing a detailed breakdown of a successful call credit spread we executed on Robinhood—delivering an 18.8% return in just 6 days.
Trade Summary at a Glance
The Trade Setup
The trade alert was released on December 31st, 2025, targeting the last trading day of the year for a bearish stance. We initiated the position on January 2nd, 2026 and closed it on January 8th, 2026.
Observing Robinhood's stock starting to lose momentum at around the $150 range after a bullish run, we identified this as an ideal opportunity for a call credit spread.
Trade Specifications
Technical Analysis
Our technical analysis highlighted several crucial indicators that supported our bearish thesis:
- 50-Day Moving Average: The stock was trading below the 50-day moving average, signaling weakness
- MACD Analysis: Confirmed a bearish outlook with momentum shifting downward
- Earnings Buffer: Earnings were scheduled for February 10th, providing ample time for our strategy to play out without earnings-related volatility
Strategy Execution
Initially, the market bounced back with strength, approaching the $123 range and poking as high as $124—nearing our top hedge. However, our analysis proved accurate as the stock retraced to the $115-$116 range.
This movement allowed us to close the trade with a $0.15 debit, achieving our desired profit target.
🎯 Trade Results
- Entry Credit: $0.60 per share
- Exit Debit: $0.15 per share
- Net Profit: $0.45 per share ($45 per contract)
- Return on Risk: 18.8%
- Duration: 6 days
Key Takeaways
This Robinhood trade exemplifies the potency of strategic analysis combined with decisive execution:
- Patience Pays: Despite initial adverse movement, sticking to our analysis paid off
- Technical Confirmation: Multiple indicators (50-day MA, MACD) aligned with our bearish thesis
- Risk Management: Defined risk of $240 per contract with clear profit targets
- Timing: Avoiding earnings-related volatility by choosing appropriate expiration dates
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