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Winner: 83.27% Gain On RKT Calls

Jan. 25, 2021 5:53 PM ETRocket Companies, Inc. (RKT)
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  • Bought the RKT 19MAR21 20 call options on Dec 30 and Jan 20 for an average cost of $2.51.
  • Sold the calls on Jan 25 at $4.60 for a gain of 83.27% on the trade.
  • 6% portfolio allocation.

I initially bought the RKT calls on Dec 30 on what appeared to be a bullish breakout above the $21.00 level - turned out to be a false signal - I then added to the calls on Jan 20 when the shares held at the $19.50 support level and the momentum bars were moving higher, pointing to a bullish turn. 

Sold the calls on Jan 25 when the shares spiked up 18% to $24.00 on a drop in interest rates which sparked a short-covering rally on the stock - in this case, patience was rewarded. 

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