MomentumOptions.com Profit Alert (RKT) for 8/2/2024

9:05am (EST)

We have a slight Profit Alert this morning as we are rolling out of RKT and into a possible new trade.

Profit Alert!

Rocket Companies (RKT, $15.36, down $0.83)

RKT August 16 calls (RKT240816C00016000, $0.70, down $0.50)

Entry Price: $0.65 (7/18/2024)
Exit Target: $1.30
Return: 8%
Stop Target: 65 cents (Stop Limit)

Action: Exit the trade this morning for a scratch.

The company reported another solid quarter with a penny beat but shares sank 5% following earnings. Revenue was $82 million above estimates.

Shares held upper support at $15.25-$15 yesterday and could rebound from here but these options expire in two weeks. Given the technical setup, we would rather exit with a slight profit while possibly looking for a reentry point using September calls.

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