SpaceX's initial public offering on June 12 has led to a fluctuating stock price, which has already fallen over 28% from its recent high, briefly dipping below its $150 opening price before stabilizing around $161. The company debuted with only 5% of its 13 billion outstanding shares available for trading, which raises concerns about future volatility as lockup periods expire.
Unlike typical lockup schedules of 90 to 180 days, SpaceX's gradual expiration allows for a steady increase in available shares, potentially leading to downward pressure on the stock price. Key dates to monitor include August 10, August 21, September 10, and others, where significant percentages of shares will become available for sale.
Analyst Jeff Jacobson from 22V Research suggests that investors may want to consider an options strategy around the September 18 expiration, particularly selling calls at $200 to mitigate risks associated with the anticipated supply increase. Overall, investors should prepare for a challenging trading environment as more insiders are permitted to sell their shares