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.

Homebuilding stock Toll Brothers Inc (NYSE:TOL) was last seen down 1.6% at $134.00, after mixed fiscal fourth-quarter results. The company posted earnings of $4.58 per share, missing analyst expectations of $4.87 per share and falling five cents from the same quarter a year ago. Meanwhile revenue of $3.42 billion surpassed estimates of $3.31 billion and representing a 2.7% increase from last year's same quarter. 

The company also issued warnings of soft demand moving forward, saying they won't be able to tell until late January whether a “choppy” environment for home sales will improve.

On the charts, TOL is headed for its fourth-straight drop, though support at the 140-day moving average is keeping losses in check. Since the start of the year, the equity is holding on to a 4.7% lead. Should these losses hold, it will be the equity's fifth consecutive post-earnings loss. 

Options traders are chiming in after the event, with 5,700 calls and 3,199 puts exchanged so far -- 3.5 times TOL's average daily options volume already. The December 150 call is the most popular, followed by the 125 call in the same series, with new positions opening at the January 2026 135-strike call. 

Shares of AeroVironment Inc. (NASDAQ:AVAV) are up 1.8% to trade at $287.61 at last check, after the defense company secured a $874.26 million contract with the U.S. army for its unmanned aerial systems (UAS) and counter-UAS systems. The news come before the drone maker's fiscal second-quarter report, which is due out after today's close.

The stock has been moving lower since its Oct. 9, record high of $417.86, but is still up 83.5% year to date, with a floor at the $260 region containing its recent pullback. Shares could today topple resistance at the 20-day moving average, which emerged back in late October.

AVAV sports a 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks higher than 99% of all other readings from the past year. In other words, an unwinding of pessimism could create additional tailwinds for the equity.

Drilling down to today's options activity, 1,563 calls have already crossed the tape -- double the volume that is typically seen at this point. Most popular is the December 280 put, where new positions are being opened.

It's worth noting that the security has tended to exceed option traders' volatility expectations over the last year. This is per its Schaeffer's Volatility Scorecard (SVS), which sits at 99 out of 100.

Lululemon Athletica Inc (NASDAQ:LULU) stock is sliding ahead of the athletic retailer's third-quarter earnings report, due out after the close Thursday, Dec. 11. Jeffries expects disappointing results, reiterating its "underperform" rating and slashing its price target to $120 today. The firm cited shrinking margins, pricing pressures, and competition from Alo Yoga, pushing the shares down 4.8% to trade at $180.80 at last glance. 

On the charts, LULU has yet to recover from its September 5 post-earnings bear gap, despite a boost from the the company's recent partnership with the NFL and Fanatics. The shares have found support at $160, home to their September 15 five-year low of $159.25, and a more recent floor at the 80-day moving average. Year to date, the equity is down 52.8%.

Lululemon stock's weak post-earnings history has contributed to much of its year-to-date deficit, with the stock dropping 18.6%, 19.8%, and 14.2% after its last three reports. This time around, the options pits are pricing in a 17.8% swing, regardless of direction, which will be a make-or-break moment for LULU on the charts. 

Options traders have been more bearish than usual ahead of earnings as well. The stock's 10-day put/call volume ratio of 1.12 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 88% of readings from the past year. 

The unavoidable noise surrounding Netflix's (NFLX) expansive, $72 billion buyout of Warner Bros Discovery (WBD) is shaking up Wall Street today. Onlookers continue to grow skeptical of what an acquisition of this scale would mean for the former's power over the industry, including one particular rival.

Challenging Netflix's offer, Paramount Skydance Corp (NASDAQ:PSKY) submitted a hostile bid valued at $108.4 billion today, or $30 per share, $18 billion more in cash than its competitor. In response, PSKY is up 8% to trade at $14.44 at last glance, attempting to work its way off Friday's steep losses.

Options have been flying off the shelves today amid the buzz. PSKY has seen 34, 000 calls traded, triple the average pace, and more than six times the number of puts. Most popular is the February 17 call, where new positions are being sold to open.

Analysts have yet to chime, but upgrades could be on the way. Heading into today, 23 of 24 covering brokerages called the stock a "hold" or worse. Should this bearish sentiment begin to unwind, PSKY could charge higher still.

The equity remains on the short sale restricted (SSR) list, though it looks like shorts have been building of late. Short interest increased 13.8% in the most recent reporting period, accounting for 5.2% of the stock's available float. With 53.46 million shares sold short, it would take short sellers over six days to buy back these bearish bets.