SpaceX options surge in early trading as stock jumps 17%

After debuting with speculation about a possible gamma squeeze, SpaceX options volume topped 600,000 by 10:35 a.m. New York time on the stock’s third trading day, with implied volatility rising to about 110%-115%.

Summary

SpaceX options quickly became one of the most actively traded contracts in the U.S. on June 16 as the stock climbed as much as 17% in early trading on its third day after listing, according to Bloomberg. By 10:35 a.m. New York time, options volume had surpassed 600,000 contracts and three-month implied volatility rose to about 110% to 115%, with the $220 call expiring Thursday the most actively traded contract. Earlier, financial blog Zerohedge, cited by BlockBeats, had argued that the launch of options could drive SPCX into a gamma squeeze toward $400 and briefly lift its market value above Nvidia, reflecting broader speculative interest in out-of-the-money call options.

Terms & Concepts
  • gamma squeeze: Options-driven buying spiral that can amplify price gains
  • implied volatility: Options market estimate of future price swings
  • out-of-the-money call options: Bullish contracts with strike prices above the current market price