SpaceX's market cap has plummeted from a high of $225.64 in June to $113.50, marking a loss of more than 1% on Monday alone and continuing a trend of falling shares over 13 of the last 16 trading sessions. The trading activity indicates a mixed sentiment among investors, with a higher volume of put options compared to calls, suggesting some traders are hedging against further declines.
Notably, the most traded options include a 330-strike call with a low probability of success, reflecting speculative interest.
Charles Moon from Prosper Trading Academy noted that while the current market conditions are challenging, particularly for AI stocks, he believes the upcoming earnings report may not trigger the feared sell-off from the lock-up expiration, where up to 911.5 million shares could be sold. However, he cautioned that this event might not provide a significant boost to the stock either.
Overall, SpaceX's volatility presents both risks and opportunities for traders as it navigates this turbulent period