Robinhood (NASDAQ: HOOD) shares dropped 3.2% to close at $112 on September 30, even after Cboe Global Markets confirmed Robinhood will be first to offer its new KPI binary contracts starting October 2026. Wall Street analysts have turned more bullish on the stock despite the decline, while chart signals point to further near-term weakness.
Cboe Taps Robinhood for KPI Binary Contracts
Cboe Global Markets said it will roll out KPI binary contracts tied to 23 companies in October 2026, with Robinhood becoming the first retail broker to offer the products. The contracts let an investor take a position on a company's performance or events, and the products will be regulated by the US Securities and Exchange Commission (SEC).
According to Cboe: "We're pleased to have Robinhood among our first partners" in bringing the SEC-regulated products to its client base, the exchange's JJ Kinahan said. The launch follows Robinhood's recent expansion into prediction markets through a deal with Crypto.com, as CoinGape earlier reported.
Wall Street Analysts Raise Targets Despite the Drop
Morgan Stanley analyst Michael Cyprys said HOOD stock could edge higher after the exchange launched agentic trading and US perpetual futures, reiterating an overweight rating and a $150 price target. Deutsche Bank also reiterated a buy rating with a $134 target. KeyBanc raised its target from $130 to $140.
Goldman Sachs and Jefferies also maintained buy ratings on the stock in September, citing Robinhood's new product launches.
Price Chart Signals More Downside
HOOD stock produced one of its biggest red candles on September 30 after the Cboe news turned into a sell-the-news event. The shares now face support at the 61.8% Fibonacci level of $110, and a close below that level could push the price toward the psychological support at $100.
The Chaikin Money Flow line has turned negative, pointing to rising selling pressure even as Wall Street turns more bullish. HOOD stock was up slightly in after-hours trading, and a rebound from the September 30 drop could lift it to the 78.7% Fib level of $117. The decline also tracks broader weakness across the US stock market, as the S&P 500 index also inched lower the same day.
Source: CoinGape
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