Options Bulls Target RKT After Fresh Coverage

Calls are running at double what's typically seen

Deputy Editor

Jun 8, 2021 at 2:28 PM

The shares of Rocket Companies Inc (NYSE:RKT) are up 4.6% to trade at $20.80 at last check. Today's positive price action comes after Piper Sandler initiated coverage with a "neutral" rating and $18 price target, while Argus Research started coverage with a "buy" rating and $23 price target.

Options bulls are targeting RKT in response, with call volume running at double its intraday average. So far, 203,000 calls have crossed the tape, in comparison to 18,000 puts. The weekly 6/11 21-strike call is the most popular, followed by the June 21 call, with new positions being opened at both.

These two new analysts are joining a mostly bearish brokerage bunch. Coming into today, 10 of the 12 analysts in coverage carried a "hold" or worse rating on RKT. Plus, the 12-month consensus price target of $20.38 was a 2% discount to current levels.

Though Rocket Companies stock has been inching higher since its May 13 all-time low of $16.22, a ceiling at the 80-day moving average appears to have kept a lid on today's pop. Year-to-date, the stock is up 7.7%.

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