Rocket Lab Corp (NASDAQ:RKLB) shares experienced a decline of 2.4%, trading at $89.57, following a downgrade from KeyBanc, which shifted its rating for the space launch company from ‘overweight’ to ‘sector weight.’ The analyst indicated that Rocket Lab’s growth potential is now fully reflected in the stock price.
Previously, Rocket Lab’s stock reached a record high of $92.19 and has posted an impressive 359% gain over the past nine months. The stock’s rising 10-day moving average has acted as a support level early in December, assisting the formation of a bullish flag pattern despite facing temporary pullbacks.
Although Rocket Lab is less shorted than it was last year—with short interest dropping over 12% in the most recent reporting period—7.5% of its total float remains sold short, indicating some investor caution.
In the options market, Rocket Lab has shown active trading behavior recently, boasting a 10-day call/put volume ratio of 2.34 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This high ratio suggests traders have been favoring call options, purchasing more than two calls for every put over the last two weeks. At this time, approximately 31,000 calls and 9,637 puts have changed hands, with the January 2026 95-strike call emerging as the most actively traded contract, along with the 90-strike call.
Furthermore, with a Schaeffer’s Volatility Scorecard (SVS) rating of 79 out of 100, shares indicate consistently higher volatility than what the options market has priced in, presenting opportunities for traders who can navigate this landscape effectively.