Rocket Lab was at an intriguing entry point and had plenty of contrarian potential
Subscribers to Schaeffer's Weekend Trader service just scored an 111% profit with the Rocket Lab Corp (NASDAQ:RKLB) January 16, 2026 40-strike call option recommendation. Below, we'll explain how this options trade hit its expected target, leaving speculators with gains.
When we initially recommended the call to subscribers on November 24, the aerospace name had just pulled back to layers of support on the charts, including its August 2025 low, 200-day moving average, and year-to-date anchored volume-weighted average price (AVWAP). We also pointed out that stacked put open interest around the 200-day trendline could be supportive.
Short interest was elevated, representing 9.71% of the stock’s available float. Options traders had been more bearish than usual as well. RKLB’s 50-day put/call volume ratio of 1.44 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranked higher than 96% of readings from the past year. Plus, RKLB's Schaeffer’s Volatility Scorecard (SVS) of 82 out of 100 meant that it tends to outperform options traders' volatility expectations.
RKLB quickly bounced off those aforementioned support levels, squeezing shorts and allowing subscribers to more than double their money in just two weeks.
