Call Traders Target RKT as Stock Rallies from Lows

The stock hit record lows in late October

Deputy Editor
Dec 8, 2022 at 1:59 PM
facebook twitter linkedin

Rocket Companies Inc (NYSE:RKT) is seeing a bullish options surge today, with 22,000 calls across the tape so far, which is three times the intraday average. The weekly 12/9 and weekly 12/30 9-strike calls are the most active, with new positions opening at both. 

This sentiment is keeping with the past couple of weeks, as RKT has seen 3.96 calls for every put in the last 10 days at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks higher than 80% of readings from the past year, showing long calls being picked up at a faster-than-usual rate. 

Analysts are singing a different tune, however, which leaves room for bull notes. Of the 13 analysts in coverage, 12 carry a "hold" or worse rating on Rocket stock, with only one "strong buy." Plus, the 12-month consensus price target of $7.19 is a 15.3% discount to current levels. 

On the charts, RKT has been attempting to rally from its Oct. 21 record low of $5.97, though long-term pressure at its 200-day moving average could keep a cap on gains. Today, RKT is up 2% at $8.47 at last glance, down 44.3% year-over-year. 

RKT Nov8


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners