Rocket Lab becomes a space giant with Iridium buyout — ride the momentum on RKLB
Thesis
Rocket Lab's massive $8 billion acquisition of Iridium is a game-changer because it vertically integrates rocket manufacturing with a massive satellite network, transitioning Rocket Lab from purely a launch company to a complete space infrastructure provider. Combining this with the broader market context: geopolitical tensions between the US and Iran are fading, prompting dip buyers to lift technology and growth stocks in pre-market trading. When a massive, transformative corporate deal hits a market that is suddenly in a risk-on mood, the acquiring company often captures strong upside momentum as investors price in the new business model.
Strategy approach
Build a rule-based strategy that enters long RKLB on D1 when the stock closes up >3% on high volume (volume > 150% of 20-day average) and holds above the prior day's high for 2 consecutive days. Exit on a 12% trailing stop or a 30-day max hold.