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

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