On Thursday, the options market for SpaceX saw a notable shift, with $316 million in put options traded, suggesting a bullish sentiment focused on stock stabilization rather than significant price increases. This was highlighted by two major trades involving the sale of puts and the purchase of calls, indicating a strategy known as a risk reversal.
One trader sold $12 million worth of 90-strike puts expiring in June 2027 while buying $4.3 million in 220-strike calls, effectively betting that SpaceX shares would not decline further and could potentially double in value. Another smaller trade involved selling $3.5 million in 75-strike puts for January 2028 and buying $5 million in 185-strike calls, executed at a debit.
These trades suggest that some larger investors believe the stock may be finding a bottom, especially as SpaceX shares have remained around $110 since late July, despite a recent low. Additionally, the stock's momentum to the downside has slowed, with technical indicators showing signs of stabilization.
The timing of these trades coincides with the end of the first insider lock-up period, which many anticipated would lead to increased selling pressure, yet the stock has remained resilient