Rocket Lab's stock surges as traders bet on bold price targets

Rocket Lab, a space technology company specialising in launch services and satellite development, has seen increased options trading activity on its shares. Investors are exploring various strategies as analysts predict significant price movements in the coming months.

The stock, which closed at $66.07 on Tuesday, is drawing attention due to differing forecasts—some targeting $68, others as high as $120 within a year.

On Tuesday, the most notable options activity for RKLB involved a bull call vertical spread. Two large trades combined to form this limited-risk strategy, signalling optimism from some traders.

Other strategies under consideration include a collar, where investors buy a put for protection while selling a call to offset the cost. A risk reversal—buying and selling a mix of puts and calls without holding the stock—was also discussed, with an estimated credit spread of around $0.25. The largest transactions in RKLB's options flow focused on April expirations, with spreads totalling over 1,400 contracts on the $50 put and $85 call strikes. These could represent a strangle, where both options are bought or sold in the same month, with an average spread price near $1.95. Analysts remain divided on the stock's potential. The lowest Wall Street target sits at $68, just above Tuesday's close. The average estimate, however, stands at $90.50, suggesting a 37% upside. One bold prediction even sees RKLB hitting $120—a near 100% return—within 12 months. Rocket Lab, known for its Electron and HASTE rockets, has completed 83 successful launches since its founding. In 2025 alone, it conducted 21 missions, with four more in early 2026. Beyond launches, the company designs and builds small and medium-lift rockets, satellite components, and spacecraft systems.

With analysts offering a wide range of price targets, RKLB's options activity reflects both caution and confidence. The stock's performance in the coming months will depend on market sentiment, company developments, and broader industry trends. Investors are closely watching how these strategies play out as Rocket Lab continues its expansion in space technology.