Option Focus | Rocket Lab USA’s Low IV Percentile Hides a $147K OTM Call Bet on $85 by 2026, Signaling Bullish Upside Speculation

Option Witch09-29 07:01

Rocket Lab USA closed at USD 72.19, down 2.38 % from the previous session.

Despite the daily dip, options activity leaned firmly bullish. A single large trade dominated the tape: a $147 thousand out-of-the-money call purchase targeting the $85 strike expiring in October 2026. With call/put volume running at 2.32, traders were clearly positioning for upside. The low IV percentile of 9.16% made long-dated premium relatively cheap, encouraging speculative bets on a future rally.

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Options Indicators

Rocket Lab USA’s implied volatility stands at 75.27%, while its IV percentile is just 9.16%, indicating that although the absolute level of implied volatility is high, it remains low relative to its own recent historical range. In that context, options appear cheaply priced rather than elevated, suggesting volatility is on the low side versus where it has typically traded. The IV/HV ratio of 1.49 also shows implied volatility is running above realized volatility, meaning the options market is still embedding a premium for forward uncertainty.

The Call/Put volume ratio is 2.32.

Large Trades

A CALL buy worth $147 thousand targeted the 85.0 strike expiring on 2026-10-16, with 1,176 contracts traded for a total premium of $147 thousand. With RKLB referenced at $72.19, this call was out of the money, making it a clearly bullish directional position that looks for upside beyond the current share price over a longer-dated horizon. The trade suggests the buyer was seeking leveraged exposure to a continued advance while keeping risk limited to the premium paid.

Overall, the large-trade flow in RKLB was bullish. The displayed block activity was entirely concentrated in an out-of-the-money long call purchase, which points to upside speculation rather than hedging or income generation. That positioning indicates traders were willing to pay premium for future appreciation potential, implying constructive sentiment and expectations for higher prices over time.

Strategy Reference

For traders preferring to collect premium with a defined risk profile, a bear call spread at the $90/$95 strikes expiring in 2026 could be considered, while a seller seeking low assignment probability might sell the $50 put in the same maturity, where the short strike sits well below current support and the low IV percentile reduces relative premium capture.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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