SpaceX has had an eventful quarter, highlighted by the delivery of four astronauts to the International Space Station and plans to expand its mobile network spectrum. Additionally, the company is reportedly considering a $40 billion debt deal to acquire Nvidia chips. CEO Elon Musk's announcement of plans to distribute shares to every child in America next year has also captured attention.
As SpaceX prepares to report its earnings, traders are anticipating a 6% price swing, which is significantly lower than the 13% drop seen after its first earnings report in August. Following that initial selloff, SpaceX shares rallied 60% over the next two months before experiencing a recent decline of up to 19%.
Current trading data indicates a bullish sentiment, with a higher volume of call options compared to puts, suggesting traders are optimistic about the stock's performance. Notably, the most popular call options are the 170-strike and 190-strike contracts, which require substantial price increases to be profitable.
However, traders must consider two upcoming share lockup periods that will release over 1.6 billion shares into the market. Despite previous share releases not impacting the stock price significantly, the implied volatility ahead of this earnings report is lower than last quarter, indicating a more stable outlook among investors