Rocket Companies's Options Frenzy: What You Need to Know

Investors with a lot of money to spend have taken a bullish stance on Rocket Companies RKT.

And retail traders should know.

We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with RKT, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 8 options trades for Rocket Companies.

This isn't normal.

The overall sentiment of these big-money traders is split between 37% bullish and 37%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $35,880, and 7, calls, for a total amount of $465,858.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $12.0 to $26.0 for Rocket Companies over the recent three months.

Volume & Open Interest Development

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Rocket Companies's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Rocket Companies's substantial trades, within a strike price spectrum from $12.0 to $26.0 over the preceding 30 days.

Rocket Companies Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

About Rocket Companies

Rocket Companies is a financial services company that was originally founded as Rock Financial in 1985 and is currently based in Detroit. Rocket Companies offers a wide array of services and products but is best known for its Rocket Mortgage business. The company's mortgage lending operations are split between its direct-to-consumer lending, which sees borrowers accessing the company's lending arm directly through either its mobile app or website, and its partner network where mortgage brokers and other firms use Rocket's origination process to offer loans to their customers. The company has rapidly gained market share in recent years and is now the largest mortgage originator in the U.S. as well as the servicer for more than 2 million loans.

After a thorough review of the options trading surrounding Rocket Companies, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Rocket Companies's Current Market Status

• Currently trading with a volume of 2,084,570, the RKT's price is up by 4.96%, now at $20.72.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 69 days.

Expert Opinions on Rocket Companies

In the last month, 5 experts released ratings on this stock with an average target price of $15.2.

• An analyst from Wells Fargo persists with their Equal-Weight rating on Rocket Companies, maintaining a target price of $15.
• Maintaining their stance, an analyst from Deutsche Bank continues to hold a Hold rating for Rocket Companies, targeting a price of $15.
• An analyst from Wedbush has decided to maintain their Neutral rating on Rocket Companies, which currently sits at a price target of $15.
• Consistent in their evaluation, an analyst from RBC Capital keeps a Sector Perform rating on Rocket Companies with a target price of $16.
• An analyst from JP Morgan persists with their Underweight rating on Rocket Companies, maintaining a target price of $15.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Rocket Companies, Benzinga Pro gives you real-time options trades alerts.