Rocket shares are drawing attention in the options pit
Rocket Companies Inc (NYSE:RKT) shares are up 6.1% to trade at $22.53 at last check. The boost derives from President Donald Trump announcing his plan to buy $200 billion in mortgage bonds to create more affordable options within the housing market.
The security now boasts a 129.7% year-over-year lead, and earlier hit a four-year-high of $22.85. RKT bounced off support at the 40-day moving average in mid-December, and is set up for another win after ending in the green five times in the last six trading sessions.
Options traders have been more optimistic than usual. This is per RKT's 10-day call/put volume ratio of 22.35 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 97% of readings form the past year.
Options are looking attractive for Rocket stock, as its Schaeffer's Volatility Index (SVI) of 55% sits higher than 15% of annual readings, implying that near-term option traders are pricing in relatively low volatility expectations.
So far, 80,000 calls and 13,000 puts have already traded hands -- volume that's triple the average intraday amount. The most popular contract by far is the weekly 1/9 22-strike call.