10 Hot Stocks to Watch — Monday, August 17, 2026

Rocket Lab surged 9.5% today after Q2 revenue beat $234M—up 62% YoY—and new $12M Space Force orbital data contract, with management advancing Neutron rocket development and $2.36B backlog. Options flow remains balanced (C/P 1.02), but heavy put volume at $50 (6,637 contracts) signals downside hedges despite bullish near-term calls clustering $85–$90 ahead of Aug 21 expiry. BofA and SeekingAlpha remain constructive on $115–$209 targets, though valuation concern and $1.94B dilutive ATM equity offering temper momentum.

SoundHound AI plunged 8.65% today, landing among the market's most shorted stocks alongside Lucid and Ondas. Yet options traders are painting a decidedly different picture: call-to-put ratio of 4.18 signals heavy accumulation of upside exposure, with 4,582 contracts of $8 calls expiring August 2026 trading at zero open interest—a classic fresh positioning signal. The real test comes at $7.50–$8.00, where both bullish options flow and technical resistance converge.

Advanced Micro Devices climbed 6.5% to $514.39 on Friday, extending its 52-week rally as legendary investor Stanley Druckenmiller added to positions in the chip maker during Q2. Options flow reinforces the rally, with call-to-put ratio of 2.11 showing heavy institutional demand. The $550 call expiring August 21, 2026 saw explosive 10,962-contract volume, signaling conviction above current levels; watch $530 as the near-term resistance on any pullback.

Broadcom shares fell sharply Friday, pressured by Stanley Druckenmiller's portfolio rotation away from the chip giant toward AMD and Amazon. Yet the options market is painting a different picture: call volume is surging with a 4.83 call-to-put ratio, and heavy concentration in $400–$420 calls expiring August 2026 suggests institutional accumulation near current lows. Soros Fund simultaneously raised its stake by 6.5%, signaling conviction amid the weakness. Watch the $405 strike as resistance.

Applied Materials tumbled 5.12% today to $507.18, despite tailwinds from accelerating AI infrastructure spending across chipmakers. Options flow reveals conviction: bullish call/put ratio of 1.58 with 4,933 contracts stacked in $600 calls expiring next August, signaling traders expect the selloff to reverse. The put wall at $400–$440 suggests institutional support near $100+ below current prices, keeping downside capped.

Okta tumbled 4.85% to $147.43 despite back-to-back analyst upgrades praising its AI-agent identity security positioning, with RBC raising its price target to $166. Options traders are hedging aggressively: put volume dwarfs calls at a 0.39 call-put ratio, with heavy positioning in $90 and $135 puts expiring next week—signaling anxiety ahead of the Aug. 26 earnings report. The stock trades near the midpoint of its $166 bull case and $135 support, leaving little room for disappointment.

Cloudflare shares fell sharply after pricing a $2.175 billion zero-interest convertible note offering, triggering investor concerns over equity dilution despite the debt's favorable terms. The options market shows a sharp bifurcation: heavy put volume at $250 (504 contracts) suggests downside protection bets, while sizable call clusters at $330–$350 point to conviction among longer-dated bulls eyeing a potential rebound. Traders should watch the $300 support level through August 2026 expiry dates, where both puts and calls show outsized positioning.

Robinhood Markets fell 3.83% to $95.56 today, extending pressure despite recent strategic wins including a $225.5M venture fund raise and plans to accelerate closed-end fund launches. Options flow tells a different story: call-to-put ratio of 1.94 signals aggressive bullish positioning, with heavy call buying concentrated at $100–$105 strikes expiring August 21st. That three-week window suggests traders see a recovery path above current levels, though a 10-year Treasury yield above 5%—flagged by Robinhood's own CIO—remains a key downside trigger.

Coinbase fell 3.53% to $148.47 despite heavy bullish options positioning ahead of Wednesday's White House crypto policy meeting. Executives from Coinbase, a16z, Ripple, and Chainlink are expected to attend discussions on prediction markets and digital assets, but lingering CFTC probes into platforms like Kalshi and JPMorgan's Polymarket exit signal regulatory headwinds. Options traders remain aggressive, with 29,000+ calls accumulated on $150–$160 strikes through Aug. 21, suggesting conviction in a rebound if policy clarity emerges.

GameStop jumped 2.93% to $22.15 on reports that CEO Ryan Cohen is abandoning his unsolicited $56 billion eBay acquisition bid in favor of a strategic partnership, easing investor leverage concerns. Options traders are aggressively buying calls, with a 3.64 call-to-put ratio and heavy volume in $19–$20 strikes expiring August 21, signaling conviction in near-term upside. Watch the $23.50 level as a key resistance target; a break above could spark a retest of the 52-week high near $28.10 within two weeks.