Rocket Lab was downgraded despite it's stellar 12-month performance
Rocket Lab Corp (NASDAQ:RKLB) shares are 2.4% lower to trade at $89.57 at last check, following KeyBanc's downgrade for the space launch company to 'sector weight' from 'overweight.' The analyst in coverage noted the stock's growth prospects are now properly baked in.
Yesterday, the security snapped up a record high of $92.19 and still boasts a 359% 9-month gain. The stock's ascending 10-day moving average has stepped up as support in early-December and caught two minor pullbacks within the same month, helping RKLB form a bullish flag pattern on the charts.
While the stock isn't has heavily shorted as it was last year -- down over 12% in the most recent reporting period -- a healthy 7.5% of RKLB's total available float is sold short.
Drilling into today's options activity, RKLB sports a 10-day call/put volume ratio of 2.34 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio indicates that traders have bought to open more than two RKLB calls for every put during the past two weeks.
At last check, 31,000 calls and 9,637 puts have changed hands. The January 2026 95-strike call is the most popular active contract, followed by the 90-strike call in the same series, with new positions opening at the former.
It's also worth noting that, with an elevated of 79 out of 100, shares have consistently realized higher volatility than its options have priced in.