MP is burning short sellers today, while options traders are moving in
One of the best stocks on Wall Street today is MP Materials Corp (NYSE:MP), last seen 51.6% higher to trade at $45.56. The U.S.-based rare-earths manufacturer announced a public-private partnership with the Department of Defense, with the Pentagon purchasing $400 million of MP's preferred stock to become the company's largest shareholder.
JPMorgan Chase (JPM) and Goldman Sachs (GS) are contributing to a $1 billion funding line. The cash infusion will go to a new magnet factory and upgraded mine in California.
This is pacing to be the stock's biggest single-session pop ever. MP traded as high as $48.11 out of the gate, a more than two-year peak, but prior to today's movement, was nursing two straight weekly losses. The shares are now up 195% year-to-date. A short squeeze is probably fueling this rally, with the 30.92 million shares sold short accounting for 23% of the stock's total available float.
Options traders are having a field day. At last check, 120,000 contracts have already changed hands, volume that's 13 times the average intraday amount. The August 35 put is the most popular by far, where sell-to-open activity is detected, per Trade-Alert. The April 17, 2026 30-strike put is also popular, with similar sell-to-open activity, indicating options traders are setting floors for the short- and long-term.