Rocket Lab Hits All-Time High—What’s Fueling the Rocket?

• Shares surge 8.68% to $42.42, touching a fresh 52-week high of $42.87
• Citi boosts price target to $50, citing Neutron rocket progress and satellite contracts
• ESA partnership and 3 consecutive launches in June amplify demand momentum

Rocket Lab’s explosive intraday rally caps a two-month doubling streak, fueled by strategic partnerships and operational excellence in a booming space sector. Investors are pricing in long-term growth as the company eyes $2.6B in 2029 revenue.

ESA Deal and Launch Momentum Ignite Rocket Lab’s Surge
Rocket Lab’s surge stems directly from its European Space Agency (ESA) contract to deploy navigation satellites by year-end and its record-breaking launch cadence. The company’s 66th, 67th, and 68th Electron rocket launches in June demonstrated its ability to deliver constellations—not just single satellites—driving demand for its 15-day production cycle. Citi’s $50 price target upgrade, valuing 20 Neutron launches annually by 2029, amplifies investor confidence in its scalable business model.

Bullish Technicals and High-Leverage Options to Capture the Lift
Rocket Lab (RKLB)’s technicals confirm breakout momentum:
• RSI: 77.83 (overbought, signaling sustained buying pressure)
• Bollinger Bands: Trading at +2.5σ above 30-day average (extreme bullishness)
• MACD: 3.25 above signal line (bullish divergence)

Aggressive bulls should target the RKLB20250718C43 call (strike $43, expiring July 18) and the RKLB20250718C45 call (strike $45). Both contracts offer asymmetric risk/reward:

• RKLB20250718C43: Delta 0.48, Theta -0.33, Gamma 0.099, Turnover $563,834
High gamma (0.099) amplifies gains on price moves; theta decay (-0.33) demands urgency
269% price gain year-to-date makes this a leveraged bet on sustained momentum

• RKLB20250718C45: Delta 0.30, Theta -0.25, Gamma 0.085, Turnover $306,909
Lower delta (0.30) reduces premium but captures deeper upside if $45 resistance breaks
Leverage ratio of 56.77% offers 1:1.8 profit potential for every $1 stock rise above strike

Technical targets: Hold above $38.87 (30-day support) to validate the breakout. Bulls aim for $45 resistance, with a breakdown risking a pullback to $40.50. For leveraged exposure, pair calls with the sector’s Teucrium Space ETF (TEU) tracking aerospace & defense equities.

Trade Hook: If $45 resistance holds, RKLB20250718C43 becomes the leveraged vehicle to $50+ by year-end.

Backtest Rocket Lab Stock Performance
The backtest of RKLB's performance after a 9% intraday increase shows mixed results. While the 3-day win rate is high at 50.54%, the returns over longer periods, such as 10 days and 30 days, are lower at 46.96% and 46.07%, respectively. This suggests that RKLB tends to perform well in the immediate aftermath of a significant price surge, but the overall trend is not consistently positive.

Rocket Lab’s Trajectory Points to Liftoff—But Watch These Key Levels
Rocket Lab’s ascent isn’t just technical—it’s fundamentally anchored in contract wins and manufacturing prowess. With the ESA deal and Neutron rocket milestones, this isn’t a fleeting spike but a sector-leading move. Monitor support at $38.87 and resistance at $45 while tracking Lockheed Martin (LMT), the sector’s $1.14% gainer, for broader aerospace trends. Investors should focus on the July 18 options expiration and the Geost acquisition closing in H2 2025. Final Alert: Hold through $40.50 or exit if the 52-week high fails—this rocket isn’t turning back until it hits stratospheric targets.