Rocket Lab Soars 5.7% on Record-Breaking Launch and Sector Rebound

Summary
• Rocket Lab (RKLB) surges 5.7% intraday to $63.35, hitting a 2025 high of $63.72
• STP-S30 mission launched five months ahead of schedule, deploying satellites for U.S. Space Force
• Sector-wide defense rally driven by Germany’s $60B defense splurge amplifies momentum
• Options chain sees explosive volume in at-the-money calls, with RKLB20251226C62 trading 100% leverage
Rocket Lab’s stock is in a tailwind-driven ascent, fueled by a historic launch and a broader defense sector surge. The company’s STP-S30 mission, completed five months early, has ignited investor confidence, while Germany’s defense spending announcement has lifted aerospace peers. With the stock trading near its 52-week high of $73.97, technical indicators and options activity suggest a continuation of the bullish trend.

Record-Breaking Launch Fuels Rocket Lab's Intraday Surge
Rocket Lab’s 5.7% intraday gain is directly tied to the successful STP-S30 mission, launched five months ahead of schedule. The deployment of four DiskSat satellites for the U.S. Space Force’s Space Systems Command underscores the company’s operational reliability in a sector plagued by delays. This achievement, coupled with the broader narrative of a potential SpaceX IPO in 2026, has repositioned Rocket Lab as a core player in the public space industry. The stock’s sharp rebound from a 50% pullback earlier this year has been reinforced by consistent mission execution, including a recent Japan Aerospace Exploration Agency (JAXA) launch, further solidifying its credibility with international clients.

Defense Sector Rally Amplifies Rocket Lab's Momentum
The aerospace and defense sector is experiencing a broad-based rally, driven by Germany’s approval of a $60 billion defense spending plan. This has lifted peers like Lockheed Martin (LMT), which is up 0.37% intraday. Rocket Lab’s gains, however, are more directly tied to its operational milestones rather than macroeconomic factors. While the sector benefits from geopolitical tailwinds, Rocket Lab’s stock is being propelled by its unique position in the small-satellite launch market and its upcoming Neutron rocket, which could expand its revenue base beyond current capabilities.

Options Playbook: Leverage Rocket Lab's Bullish Momentum with High-Gamma Calls
• MACD: 2.12 (bullish divergence), Signal Line: 0.72, Histogram: 1.41 (expanding)
• RSI: 71.55 (overbought but supported by volume)
• Bollinger Bands: Price at $63.35 (near upper band of $65.10)
• 200-day MA: $39.21 (far below current price)
• Support/Resistance: Key resistance at $65.10 (Bollinger upper), support at $49.33 (middle band)
Rocket Lab’s technicals paint a picture of a stock in a short-term bullish trend, with RSI near overbought territory and MACD diverging positively. The options chain reveals aggressive positioning in at-the-money calls, with high leverage and gamma metrics suggesting continued volatility. Two top options for capitalizing on this momentum are:

• RKLB20251226C62 (Call, $62 strike, 2025-12-26 expiry):
- IV: 82.06% (high volatility)
- Leverage Ratio: 17.08% (high)
- Delta: 0.589 (moderate sensitivity)
- Theta: -0.359 (rapid time decay)
- Gamma: 0.0506 (high sensitivity to price moves)
- Turnover: $114,593 (liquid)
- Payoff (5% upside): $1.68 (max(0, 66.52 - 62))
This contract offers a high-gamma, high-leverage play for a continuation of the rally. The rapid theta decay suggests urgency for a near-term move, while the high IV ensures significant premium capture if the stock breaks above $62.

• RKLB20251226C63 (Call, $63 strike, 2025-12-26 expiry):
- IV: 77.08% (moderate)
- Leverage Ratio: 21.07% (high)
- Delta: 0.537 (moderate)
- Theta: -0.338 (rapid decay)
- Gamma: 0.0551 (high)
- Turnover: $67,769 (liquid)
- Payoff (5% upside): $1.17 (max(0, 66.52 - 63))
This option balances leverage and liquidity, ideal for a breakout above $63. The high gamma ensures responsiveness to price swings, while the moderate IV provides a buffer against volatility compression.

Action: Aggressive bulls should target RKLB20251226C62 for a short-term pop above $62.50, while RKLB20251226C63 offers a safer, higher-probability play if the stock consolidates near $63.

Backtest Rocket Lab Stock Performance
The backtest of RKLB's performance following a 6% intraday surge from 2022 to the present shows impressive results. The strategy achieved a 433.53% return, significantly outperforming the benchmark, which returned 48.07%. The excess return was 385.46%, indicating that the strategy's focus on intraday percentage changes greater than 6% was highly beneficial. The CAGR was 53.47%, and the Sharpe ratio was 0.65, suggesting that the risk-adjusted return was substantial. However, the maximum drawdown was 0.00%, which could imply that the strategy did not experience any significant losses during the backtest period, potentially due to the conservative nature of the 6% threshold.

Rocket Lab’s Momentum: A Catalyst-Driven Bull Case
Rocket Lab’s 5.7% surge is a testament to its operational execution and sector tailwinds. The STP-S30 mission’s early completion and the Neutron rocket’s 2026 debut position the stock for sustained growth. Technicals suggest a test of the $65.10 Bollinger upper band, with a breakdown below $49.33 (middle band) signaling a reversal. Investors should monitor the 52-week high of $73.97 and the Neutron’s progress. Meanwhile, sector leader Lockheed Martin (LMT) is up 0.37%, reinforcing the defense sector’s strength. Act now: Buy RKLB20251226C62 for a short-term pop or hold for the Neutron-driven inflection in H1 2026.