SpaceX options debut shows high volatility expectations with 15% chance of 50% swing either way, strategist says
By
Joanna Ossinger
3h ago· 2 min readenNews
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Summary
SpaceX options began trading after the company's IPO, showing high volatility expectations. According to Susquehanna strategist Chris Murphy, the options market implies roughly a 15% chance of the stock rising 50% and a similar chance of it losing half its value within three months. The stock saw the fifth-highest call volume of the day. Murphy noted that large trades appeared to be hedges against future supply risk, with upside calls reflecting demand for further gains and downside puts indicating concerns about lock-up supply, valuation risk, and post-listing volatility.
Key quotes
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Upside calls reflect demand for another sharp move higher, while downside puts reflect concern around lock-up supply, valuation risk, and the possibility that the initial post-listing
SpaceX options on their first day of trading showed about a 15% chance for the stock to rise by 50% and a similar possibility that it loses half its value in the next three months
Options on SpaceX have started trading after the company's IPO, and they show a wide variation in bets.
