The $330-strike call contract for SpaceX has seen a surge in popularity, with over 450,000 open positions, making it the most traded option despite the stock's 40% drop since its peak. This unusual interest is likely driven by institutional investors who may be using these options as a hedge against short positions or structured products.
On Monday alone, approximately 90,000 of these contracts were purchased, totaling around $2.2 million, with an average price of 30 cents per contract. The implied volatility for SpaceX is notably high at 133, indicating significant price fluctuations are expected, particularly with the earnings report due soon.
Analysts suggest that a price increase to around $215 could make these options profitable, highlighting the speculative nature of this trading activity. The upcoming earnings report and the subsequent opening of the lockup period for insiders could further influence stock volatility, making the current options trading particularly noteworthy for investors watching SpaceX's performance