Daily Options Selling Strategy | Space sector explodes across the board! RKLB surged in the previous trading session, ASTS to release earnings. How to use options flexibly?

I. Market Barometer

The previous trading day saw broad gains in US equities, $SPDR S&P 500 ETF (SPY.US)$ closing up 0.83%, $Invesco QQQ Trust (QQQ.US)$ rising 2.34% to a new high, with the commercial space sector becoming the main focus amid $Rocket Lab (RKLB.US)$ better-than-expected earnings catalyzing capital inflows, $Rocket Lab (RKLB.US)$ 、 $AST SpaceMobile (ASTS.US)$ both seeing significant volume spikes and strong rallies, providing an optimal window for high-probability options selling strategies.

II. Focus on Hot Targets

$Rocket Lab (RKLB.US)$ : Surging on heavy volume post-earnings release, Q1 revenue surpassing $200 million for the first time, with backlog orders reaching $2.2 billion

$Rocket Lab (RKLB.US)$ Surging 34.22% on heavy volume the previous trading day, closing at $105.47, with total daily turnover reaching $7.853 billion and a turnover rate of 14.82%, indicating aggressive buying driven by concentrated capital inflows.

In terms of news, the company released its fiscal Q1 2026 results, setting multiple historical records in its earnings report.Revenue broke through the 200-million-dollar barrier for the first time, reaching 200.3 million dollars, a year-on-year increase of 63.5%, surpassing market expectations of 189.6 million dollars. Gross margin climbed to 38.2%, a new historical high, while adjusted EBITDA losses narrowed to 11.8 million dollars, better than expected. The total backlog of orders reached approximately 2.2 billion dollars, up 20% quarter-on-quarter, providing solid assurance for future revenue growth.

The company signed several major contracts during the quarter,The company secured the largest single launch contract in its history, covering five Neutron and three Electron launches, while also announcing the acquisition of space robotics company Motiv Space Systems to strengthen its vertical integration capabilities.

Wall Street analysts collectively upgraded their ratings and target prices, with 76.9% of the 13 covering analysts assigning a strong buy rating. The average target price is $98.09, with a high estimate of $120. Technically, the stock gapped up at the open and continued to rise, gaining over 34% in a single day, with trading volume more than four times the 30-day average. Short-term bullish sentiment is at an extreme, warranting caution for potential technical pullbacks.

$AST SpaceMobile (ASTS.US)$ : Space-related stocks surged across the board, with ASTS set to release earnings after the market close on May 11.

$AST SpaceMobile (ASTS.US)$ The previous trading session closed up 14.84% at $75.05, with total trading volume reaching $1.62 billion, a turnover rate of 9.06%, and a volume ratio of 1.32, indicating moderate volume-driven gains.

In terms of news, ASTS is scheduled to release its earnings report after the market close on May 11. Institutional forecasts expect the company to achieve revenue of $36.58 million in Q1 2026, representing year-over-year growth of 4,994.92%. The earnings results will be a key catalyst for short-term movements. Analysts' consensus target price is approximately $90.15, with a consensus rating of "Hold".

Technically, the stock has broken through a month-long consolidation range, with trading volume increasing by about 30% compared to last week's average. Short-term buying pressure is strong, with resistance at the $80 level and support near the previous range center around $68.

III. Seller Options Strategy

1. Sell 1 lot$Rocket Lab (RKLB.US)$ 20260618 80P, estimated margin requirement (for reference only): $8,000 ($80 × 100)

2. Sell 1 contract $AST SpaceMobile (ASTS.US)$ 20260515 65P, estimated margin requirement (for reference only): $6,500 ($65 × 100)

Strategy Logic:

For investors who are optimistic about the long-term prospects of the space satellite sector but are reluctant to chase high prices in the short term for shares like RKLB and ASTS, directly buying at current levels poses a risk of short-term technical pullbacks. Selling Put options allows collection of premiums; if the share price continues to rise or remains above the strike price, this strategy can enhance the annualized return on idle funds. If the share price pulls back near the strike price, it also allows for entering the market at a more favorable planned price.

IV. Risk Control Reminder

Although the seller strategy has a high probability of success, investors must still manage risks effectively:

– Position management is key:The biggest risk for option sellers lies in black swan events. It is recommended that margin exposure for a single underlying should not exceed 20% of total capital. Never sell options beyond your capacity for the sake of greedy premiums.

– Timely rolling of covered call options: When a covered call option becomes deeply in-the-money (stock price far exceeds the strike price), and if the underlying stock is still viewed favorably, decisively 'roll' the position — that is, close the current option by buying it back and simultaneously sell an option with a later expiration date and a higher strike price to avoid having the stock called away at a low price.

– Cash-secured put options warn of 'left-tail risk':For cash-secured puts, if the stock price collapses due to deteriorating fundamentals (rather than a normal pullback), do not hold on stubbornly. At this time, stop losses should be executed, or 'rolling down' can be employed to buy time and wait for volatility to normalize.

Make the most of the options seller zone to understand income strategies for selling options,Earn option premiums!

Options Risk Warning

An option is a contract that grants the holder the right, but not the obligation, to buy or sell an asset at a fixed price on a specific date or at any time before that date. The price of an option is influenced by various factors, including the current price of the underlying asset, the strike price, time to expiration, and implied volatility. Implied volatility reflects the market’s expectations for the level of volatility in the option over a future period. It is a data point derived inversely from the Black-Scholes option pricing model and is generally regarded as an indicator of market sentiment. When investors anticipate greater volatility, they may be more willing to pay a higher price for options to hedge risks, resulting in higher implied volatility. Traders and investors use implied volatility to assess the attractiveness of option prices, identify potential mispricings, and manage risk exposure.

Disclaimer

This content does not constitute any offer, solicitation, recommendation, opinion, or guarantee for any securities, financial products, or tools. The risk of loss in trading options can be substantial. In some cases, losses incurred may exceed the initial margin deposited. Even if you set contingency orders, such as 'stop-loss' or 'limit' orders, these may not necessarily prevent losses. Market conditions may make such orders unexecutable. You may be required to deposit additional margin within a short period. If you fail to provide the required amount within the specified time, your open positions may be liquidated. However, you will still be responsible for any shortfall in your account resulting from such liquidation. Therefore, before trading, you should study and understand options and carefully consider whether such trading suits you based on your financial situation and investment objectives. If you trade options, you should be familiar with the procedures for exercising options and the rights and obligations upon expiration. Options trading involves extremely high risks and is not suitable for all investors. Investors should read Characteristics and Risks of Standardized Options carefully before engaging in any options trading strategy.

Editor/Doris

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