Shares of Rocket Companies Inc (NYSE:RKT) have lost over 30% over the past year and are down close to 6% year to date.
On CNBC’s “Options Action,” Mike Khouw of Optimize Advisors said the stock traded 7.6 times its average daily put volume on Thursday.
A large bearish bet came in the form of the purchase of 25,000 of the March 14/10 put spreads for an average price of $1.04 per contract, Khouw mentioned. The trade represents 2.5 million shares.
The trader expects shares of Rocket Companies to lose as much as 28% over the next couple of months.
“So, at least one institutional investor sees further weakness ahead,” Khouw said.