Space Exploration Technologies (SPCX) launched its IPO at $135, briefly reaching $225 before falling to $122 after the automatic abort of Starship Flight 13. This decline represents a 45% drop from its peak and about 20% from its IPO trading price. In light of this volatility, Jeff Kilburg is employing a bullish strategy using options to capitalize on the elevated implied volatility.
He executed a risk reversal by selling an 8/21/2026 SPCX $100 put for $3.75 and buying an $150 call for $6, resulting in a net cost of $2.25. This strategy aims to take advantage of the inflated prices of downside options while positioning for a potential rebound if SpaceX successfully launches next week.
Kilburg's approach reflects the current market sentiment, which is heavily influenced by fear and uncertainty surrounding the company's future launches. His willingness to own SPCX at $100 indicates confidence in a recovery towards the IPO price of $135, especially as the market may be overreacting to recent events