Can’t Stop, Won’t Stop … GameStop?

Hi Shoppers,


Did you see that yesterday?


We have another GameStop/Reddit/meme stock situation on our hands.


Kind of …


Only now it is Rocket Companies (Ticker: RKT), the parent company of Quicken Loans.


It closed yesterday up $17.30 — or 71% at $41.60.


While the average daily stock volume for RKT is around twelve million shares … on Tuesday the stock traded 373 million shares!!



The insanity doesn’t stop there, though …


Not by a long shot.


Crazy Numbers


  • The 10-day historical volatility, which measures the movement of the stock itself, jumped from 75.08 on Monday to 275.84 yesterday …

  • The 20-day HV went from 56.49 on Monday to 200.41 yesterday.

  • The implied volatility of the options was 91.69 on Monday … Yesterday it was 267.10!



The options volume supports these major moves:


  • On Monday, RKT was No. 14 for the most options traded, with 367,000 contracts and an average daily volume of 127,000 contracts.

  • Yesterday, RKT came in second place, just under SPY — trading a whopping 1.53 million contracts!



The stock halted trading three times on Tuesday with an M reason code M which means Volatility Trading Pause:



Slightly Different …


Now, RKT is separating itself from GameStop-like stocks by announcing a share buyback and issuing a special dividend of $1.11 a share.


They are saying, “We are a real money-making company, damn it!


Can you say Game On??


Will certainly be fun to watch.


Thanks for Reading … See You Next Tuesday!

Licia Leslie

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.