The Gap Fill Setup I’m Targeting in Robinhood

by Graham Lindman | May 4, 2026

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Financials have been bottom feeders lately, but historically they’re the fourth strongest sector in May. That seasonal strength sets the stage for a potential catch-up move, and Robinhood (HOOD) fits neatly into that theme.

I shared this setup with my Telegram group on Friday, and if you caught it then, you’re already up nicely — the stock has pushed higher and the calls moved 50-60%.

There’s still room if you want to get positioned. HOOD has been in a downturn, then gapped down on earnings, and is now turning back up. Gaps like this often fill, and that’s the core of this trade.

Visually, the earnings drop left an open window on the chart with clean downside-to-upside symmetry, and the natural magnet level sits around $80-82. That’s the area I’m targeting for the fill.

I should note something up front for transparency. I really like HOOD as a stock — but I don’t trade options on the Robinhood platform itself due to execution and functionality limitations. This setup, though, is one I’m taking in my real portfolio and, as always, you’ll see the same risk and fills I do.

The Specific Trade Structure

I’m using the May 15 expiration, buying the $75 call and selling the $80 call. When I walked through this live, the spread was about $2.14.

Here’s a simple breakdown for clarity: Example: Pay $2.14 for the call spread (controls 100 shares) = $214 risk. If HOOD closes above $80 at expiration, the spread pays out $5 (or $500 total). Profit is $500 minus $214 = $286. That’s a 133% ROI.

Be sure and check prices once you read this because the stock moved some on Monday, so the prices won’t be the same. But if we get a slight dip this morning, you might be able to get in around the same price.

Why May 15 instead of the nearer-term expiration? The shorter expiration requires the stock to move faster yet the additional payout is only marginal. The May 15 contracts give more breathing room with less decay pressure while still offering strong leverage.

Execution Matters

Use a limit order. As HOOD moved while I discussed the trade, the spread ticked up to $2.20. That’s normal with momentum. I would not pay more than $2.50, which would give you a 1:1 risk-reward ratio. Ideally, you get filled at $2.25 or lower.

Always use a limit order for entry and avoid chasing the spread above your risk tolerance. Consider crawling bids up in small increments rather than market buying.

This crawl technique simply means raising your bid slowly — a few cents at a time — if price moves away from you. It keeps you disciplined and prevents emotional overpaying. Scaling in this way is especially useful in tight bid-ask environments.

The setup itself is medium conviction, built on sector seasonality, a technical gap fill and clean risk-reward. With the 10% upside window to $80-$82, it’s a logical, structured play worth taking.

Graham Lindman
Graham Lindman Trading

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