SpaceX's stock has experienced a notable rally, with shares climbing 8% on Monday, marking a significant recovery from previous lows and allowing CEO Elon Musk to regain his status as a trillionaire. The stock's resurgence is supported by a positive outlook from Morgan Stanley analyst Adam Jonas, who has set a price target of $300.
Additionally, SpaceX's recent successful launch of four astronauts to the International Space Station in record time has further bolstered investor confidence. The trading volume for options on SpaceX was notably high, with 1.7 million contracts exchanged, indicating strong market interest.
However, the implied volatility of the stock has decreased significantly compared to its debut, suggesting that traders may need to adjust their expectations for future price movements. Currently, market-makers estimate a 54% chance that SpaceX will reach $185 by the end of the month, while the likelihood of hitting $225 is less than 50%.
The options market shows a bullish sentiment, with more calls being purchased than puts, reflecting optimism among traders. Analysts note a growing correlation between SpaceX and Tesla, indicating that movements in one may influence the other.
Overall, while the stock is gaining momentum, the lower implied volatility suggests that investors should be prepared for a potentially longer path to new highs