RKLB Gap Down Earnings Reversal Play + Flag Breakout

Two powerful setups are in play here, and both are primed for action:

🔹 Setup 1: Earnings Gap Down Reversal (Kicker Candle)

Post-earnings flush, buyers stepped in hard — this has been a relentless pattern in this market.

Even on earnings misses, buyers are aggressive. We saw the same setup work beautifully on TEM and HIMS recently.

This is a kicker candle setup — strong reversal signal after a gap down flush.

🔹 Setup 2: Flag Breakout at $23.50

Price is coiling into a tight flag, with a breakout level at $23.50.

Risk is defined, with stops at $22, keeping the trade tight.

🔹 My Trading Plan:
1️⃣ Initial Position: Buying May 30th $25 Calls today.
2️⃣ Risk Management: Stop at $22 for the calls and underlying stock.
3️⃣ Add Size: On a clean breakout over $23.50.

🔹 Why This Setup is Hot:

The earnings gap down reversal has been a killer setup in this market — buyers are dominating.

Dual setup means two chances to win: Reversal + Flag Breakout.

Tight risk, with a clear invalidation at $22.

⚠️ Risk Management: Tight stop at $22 — this is a LOW-risk, high-reward setup.