A newly listed company is seeing a lot of unusual options activity. The company is Rocket Companies (RKT), which owns Rocket Mortgages and Quicken Loans. Despite not being around for very long (on the exchange), over 120,000 option contracts traded on one day last week. Most of the activity was on the call side, which is generally considered bullish for the stock. However, the largest trade of the day was likely a call sale, which possibly could have been part of a covered call trade. Hear what Jay thinks may be behind it.
Jay Soloff is the Options Portfolio Manager at Investors Alley. He is the editor for Options, an investment advisory bringing you professional options trading strategies, with all the bells and whistles of Wall Street, but simplified so all you have to do is enter the trades with your broker. Click here for your copy of the Beginner’s Options Guide before it’s no longer free.
