Rocket Companies call buying jumps as options traders rotate into housing names

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Rocket call buying surges in housing

Highlights

Rocket Companies options volume doubles average with 90% call activity, driven by bullish buying on Nov. 20 14- and 16-strike calls.
Energy sector lags as WTI crude drops below $90 and XLE falls 5.6%, spurring over triple average options volume with 57% puts and heavy Jan. 15 62.5-strike put buying.
Invesco Solar ETF TAN jumps 9% to highs since July with a fivefold surge in options, 80% calls, and concentrated 48-strike call activity targeting a 6% rally through Nov. 20.

Housing and sector trades gain momentum

As reported by CNBC, the S&P 500 adds nearly 2% by midday Wednesday while the Cboe Volatility Index drops about four points to below 17, marking its biggest one-day decline since at least July. The move signals a sharp unwind in hedging demand as traders reposition after the election result.

Among the clearest stock-specific shifts, Rocket Companies sees options volume reach double its average with a strong bullish tilt. Of roughly 110,000 contracts traded, 90% are calls, and more activity appears to be initiated by buyers than sellers, with the Nov. 20 calls at the 14 and 16 strikes drawing the most interest.

Energy-linked trades move the other way as WTI crude falls below $90 and energy stocks drop 5.6%, the steepest decline among S&P 500 sectors. Options on the State Street Energy Select Sector SPDR ETF, XLE, rise to more than three times the 30-day average, with 57% of volume in puts and large bearish trades centered on the Jan. 15 62.5-strike put, according to SpotGamma data.

Solar strength and chip weakness shape rotation

Falling oil prices also support a handful of inflation and interest-rate sensitive trades. Consumer discretionary stocks rally almost 5%, though options volume in the SPDR sector fund XLY remains below average and is evenly split between puts and calls, based on Cboe LiveVol data.

Solar stocks continue to attract bullish speculation, extending unusual options activity seen before the midterms. The Invesco Solar ETF, TAN, climbs another 9% to its highest level since July, while options volume rises to more than five times average and 80% of contracts are calls; the most popular trade is the 48-strike call targeting a 6% rally through Nov. 20.

Technology-related flows are weaker, particularly in semiconductors. The VanEck Semiconductor ETF, SMH, falls 2.6% to its lowest level since May, with options volume running at twice the average and 70% of activity in puts; the Nov. 13 475-strike put is the most actively bought contract by volume.

In our earlier article, we examined how the S&P 500’s push toward 8,000 was being tested by the combination of lofty third-quarter earnings expectations, higher oil prices, and elevated Treasury yields ahead of the midterm elections. We also highlighted growing concentration risk—where AI-linked megacaps were carrying index performance despite weakening breadth—and noted investors starting to adjust allocations as uncertainty increased.

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