SpaceX Options Trading Surges, Becomes One of the Hottest Stocks in U.S. Options Market

06/16 15:35

On June 16, Bloomberg reported that SpaceX (SPCX.O) options became one of the most actively traded products in the U.S. market on Tuesday, driving the company's stock up by as much as 17% in early trading on its third day of listing. As of 10:35 AM New York time, the trading volume of SpaceX options had exceeded 600,000 contracts, making it the third-largest options trading target in the U.S. Chris Murphy, co-head of derivatives strategy at Susquehanna International, stated, "The options volatility is clearly skewed upward, and investors are willing to pay higher prices to participate in the further short squeeze following the listing." According to Murphy's data, an important indicator of options demand, the implied volatility, opened at a high level, with the three-month implied volatility reaching about 110% to 115% in early trading. The most actively traded options contract was a call option with a strike price of $220 expiring on Thursday, with a trading volume of 25,000 contracts, corresponding to 2.5 million shares. Jake Taylor, head of U.S. single-stock options at Optiver, commented, "Given the unusually high interest from investors, we expect both institutional and retail investors to actively participate, keeping market trading activity and volatility at elevated levels as the market continues to form its judgment on the company's valuation and prospects."
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