Rocket Labs Bullish Diagonal Spread: Capture Upside with Less RiskTraders are eyeing a bullish diagonal spread for Rocket Lab stock, which has been on a hot streak. This advanced options play involves buying a longer-dated call and selling a shorter-term out-of-the-money one, keeping costs low while aiming for the stock to hit your target. For Rocket Lab, trading around seventy-five dollars, youd buy the February twentieth seventy-five dollar call for about one thousand one hundred ninety dollars and sell the January sixteenth eighty-five dollar call for roughly three hundred ninety-five dollars. This nets a debit of seven hundred ninety-five dollars per spread, with a max loss of the same amount. The strategy shines if the stock rallies toward eighty-five dollars by the first expiration, where you could pocket around six hundred fifty dollars in max profit. Rocket Lab, rated a strong buy by analysts, offers smart exposure to its rally, but remember the risks—sharp drops can hurt early, so do your homework and talk to an advisor before diving in.

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