Rocket Lab to the Moon… Buy or Sell Now?

🚀 Rocket stock to the moon?

$Rocket Lab USA, Inc.(RKLB)$ has soared 85% YTD, hitting a fresh high of $53.44 in the last two trading days. Did you catch this launch?

Some sharp traders in our community sure did:

🎉 Huge congrats to @HoldMySake for earning 752% returns on $Rocket Lab USA, Inc.(RKLB)$.

🎉 Huge congrats to @s33b for securing 339% returns on $Rocket Lab USA, Inc.(RKLB)$.

🎉 Huge congrats to @Anh for earning $14,767 returns on $Rocket Lab USA, Inc.(RKLB)$.

Missed the rocket? Don’t worry — there's always a strategy that fits your orbit. 🚀

🛰️ Why the Rocket Lab (RKLB) buzz?

As a top player in the space race, RKLB boasts serious long-term potential — but short-term risks remain. The company isn’t profitable yet, burns cash, and operates in a high-risk, capital-heavy sector. And with a steep valuation, the stock’s looking a bit overheated.

💡 So what’s the move?

• Already holding? Sell covered calls to earn income while reducing upside risk.

• Waiting to enter? Consider cash-secured puts — especially with elevated implied volatility.

This lets you collect premium upfront, and potentially buy shares at a discount — a smart strategy in uncertain markets.

🔧 Q1 2025 Highlights

• Neutron rocket added to U.S. Space Force program — major revenue potential

• New defense contracts with U.S. and U.K. military

• Electron rocket: 5 launches this quarter, 8 new contracts

• Space systems expansion via acquisition and vertical integration

• Goal: build a full-stack satellite network

💰 Financials at a glance

• Revenue up +32% YoY

• Gross margin ~30%

• $1B+ backlog, with 56% set to convert in 12 months

• Broad customer mix: government + commercial

🌌 Bigger picture?
RKLB is building an end-to-end space solution — rockets, satellites, infrastructure. If they execute, they could join SpaceX at the top. But it won’t be easy.

🤔 Why sell puts now?
RKLB trades at 55x sales with ~$466M revenue and a ~$25B valuation — far pricier than SpaceX’s 14x. That’s a lot of premium for future growth that hasn’t landed yet.

Selling puts means:
✔️ Instant cash
✔️ Buy-in at a lower price if it drops
✔️ More favorable risk/reward

🔁 How it works:
You get paid. If RKLB drops below your strike, you buy the stock at a discount. If not, you keep the premium — simple as that.

⚠️ But beware — RKLB is volatile, and the upcoming Neutron launch is a big binary event. If it fails, shares could tank fast.

So…
📈 Trade the hype?
🛡️ Hedge with options?
🚀 Or just observe from the launch pad?

What’s your play from here? 🌕

🧭 Share positions: