Rocket Lab Plunges 9% Intraday Amid Sector-Wide Turbulence: What’s Fueling the Selloff?

Summary
• Rocket Lab (RKLB) slumps 9.07% to $44.84, its worst intraday drop since 2022.
• Sector peers like Lockheed Martin (LMT) dip 0.74%, signaling broader aerospace jitters.
• Options volatility surges: 2025-09-12 put options with 80%+ implied volatility see 165%+ turnover spikes.
• The selloff coincides with Trump’s rumored defense firm stakes and moon helium mining startup hype. With RKLB trading near its 52-week low of $5.88, the stock’s sharp decline raises urgent questions about sector dynamics and investor sentiment.

Trump’s Defense Gambit and Lunar Mining Hype Trigger RKLB Panic
Rocket Lab’s 9% intraday collapse aligns with escalating geopolitical uncertainty and sector-specific headwinds. The stock’s decline follows reports of Donald Trump’s potential acquisition of stakes in defense firms, which could disrupt SpaceX’s dominance and create regulatory headwinds for commercial aerospace players. Simultaneously, moon helium mining startups like Interlune are grabbing headlines, shifting investor focus away from traditional launch providers. RKLB’s technicals—trading below its 30-day moving average of $45.28 and within Bollinger Bands’ lower boundary of $39.85—suggest a breakdown in momentum. The stock’s -92.71 P/E ratio and -9.07% intraday loss reflect a market reassessing its growth narrative amid macroeconomic and sector-specific risks.

Aerospace Sector Volatility: LMT’s 0.74% Dip vs. RKLB’s 9% Plunge
While the broader aerospace sector remains mixed, Rocket Lab’s selloff outpaces its peers. Lockheed Martin (LMT), the sector’s largest cap stock, fell 0.74% on the same day, indicating the decline is more company-specific than sector-wide. However, the White House’s proposed termination of the SLS super-rocket program and rising defense budgets for Ukraine and NATO add a layer of uncertainty. RKLB’s sharp drop suggests investors are pricing in regulatory risks tied to Trump’s potential defense policies and the sector’s exposure to geopolitical tensions, which could amplify volatility in the near term.

Options Playbook: Capitalizing on RKLB’s Volatility with High-Leverage Puts
• MACD: 1.46 (above signal line 1.04, bullish divergence)
• RSI: 65.12 (neutral, no overbought/oversold signal)
• Bollinger Bands: $49.76 (upper), $44.81 (middle), $39.85 (lower)
• 200-day MA: $28.48 (far below current price)
• Support/Resistance: 30D support at $44.66–$44.83, 200D support at $18.33–$19.07

Rocket Lab’s technicals suggest a short-term bearish bias, with key support levels near $44.66 and $39.85. The stock’s 52-week range of $5.88–$53.44 and -92.71 P/E ratio highlight its speculative nature. With the 2025-09-12 options expiring in 13 days, high-leverage puts offer asymmetric risk/reward potential. Two top options from the chain:

• RKLB20250912P44
- Type: Put
- Strike: $44
- IV: 80.76% (high volatility)
- Leverage: 21.18% (moderate)
- Delta: -0.4377 (sensitive to price drops)
- Theta: -0.0248 (slow time decay)
- Gamma: 0.0663 (responsive to price swings)
- Turnover: $93,223 (liquid)
- Payoff (5% down): $0.42 per share (max gain if RKLB falls to $42.60)
- Why it stands out: High IV and gamma make this put ideal for a sharp decline, with decent liquidity for entry/exit.

• RKLB20250912P44.5
- Type: Put
- Strike: $44.5
- IV: 78.25% (high volatility)
- Leverage: 19.51% (moderate)
- Delta: -0.4719 (high sensitivity to downward moves)
- Theta: -0.0150 (minimal time decay)
- Gamma: 0.0691 (high responsiveness)
- Turnover: $32,801 (liquid)
- Payoff (5% down): $1.90 per share (max gain if RKLB falls to $42.60)
- Why it stands out: Slightly higher strike price offers more upside if RKLB drops sharply, with strong gamma for leverage amplification.

Trading View: Aggressive bears should target the $44.5 put for maximum leverage, while conservative traders may cap risk with the $44 put. Watch for a breakdown below $44.66 support; if confirmed, the 2025-09-12P44.5 could outperform.

Backtest Rocket Lab Stock Performance

RKLB’s 9% Drop: A Buying Opportunity or a Warning Shot?
Rocket Lab’s 9% intraday plunge reflects a confluence of sector-specific risks and macroeconomic uncertainty. While the stock’s technicals suggest a short-term bearish bias, its long-term bullish trend (30D MA at $45.28) and sector leadership in small satellite launches could attract contrarian buyers. Investors should monitor the $44.66 support level and the White House’s final decision on the SLS program. With Lockheed Martin (LMT) down 0.74%, the aerospace sector remains in flux. For now, high-leverage puts like RKLB20250912P44.5 offer a compelling short-side play if the $44.5 level breaks. Action Alert: Watch for a close below $44.38 (intraday low) to confirm the bearish thesis.