Options trading in Rocket Companies surged as investors responded to a market rally following the midterm elections. The mortgage lender and Redfin owner saw options volume reach twice its average, with a strong bullish bias, according to the source report.
About 110,000 Rocket options changed hands, and calls made up 90% of the total. More trades appeared to be initiated by buyers than sellers. The most active contracts were calls with strike prices of $14 and $16, expiring Nov. 20.
The activity came as stocks climbed and traders shifted away from large technology names. By midday Wednesday, the S&P 500 had risen just under 2%, while the Cboe Volatility Index fell about four points to below 17—its largest one-day drop since at least July, according to the report.
Trading was mixed across other sectors. Energy stocks fell 5.6% as crude oil prices declined, while the Invesco Solar ETF gained 9% and saw options volume exceed five times its average, with calls making up 80% of trading. Meanwhile, options activity in the VanEck Semiconductor ETF leaned bearish: 70% of its volume was in puts as the fund fell 2.6%.
Sources: CNBC Markets.