Weekend Trader Series
August 24, 2025
Open Positions Update
- Close the Interactive Brokers Group (IBKR) December 19, 2025, 65-strike call on Monday, August 25. Close the position at a limit price within the range of the current market price when you place the order.
The following is this week's recommendation:
Rocket Lab (RKLB)Place a limit order to buy the Rocket Lab (RKLB) October 17, 2025 42-strike call at a limit price within range of the current market asked price when you place your order. At the close on Friday, August 22, this option was offered at $6.95. RKLB closed at $44.38 on Friday, August 22.Do not attempt to enter this position after Monday's close.Please use the following guidelines to manage the position:- Exit the position if the option is at a 100% gain from your entry price.
- If the option has not reached its target profit by 3:00 p.m. Eastern time on Monday, September 15, close the position.
- If there is a change to the above closeout parameters, we will notify you in your regular Sunday evening communication.
Rocket Lab (RKLB) stock marked a more than 20% pullback from its July 18, record close of $48.60 to Wednesday’s low of $38.26, the latter of which coincides with big put support in the weekly 8/29 expiration series as well as the 50-day moving average. With this technical setup in place, now looks like a good time to buy in on the dip.
Short interest still accounts for 11.3% of the security’s available float, even though it has been slowly declining from all-time highs in May. With many shorts underwater, they could view this pullback as a covering opportunity and create additional tailwinds for RKLB.
It’s also worth noting that implied volatility (IV) ranks lower than 86% of readings from the past year. Our recommended October 42 call has a leverage ratio of 4.1, and will double on a 26% rise in the underlying security
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