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.
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!