Options market prices 6% SpaceX swing ahead of 2nd earnings report
What's new: Traders leaned bullish, with 665,000 call contracts traded Monday as two share lockup releases near after earnings.
SpaceX was set to report earnings Tuesday after the bell, with options traders pricing in about a 6% move in the stock, according to Cboe LiveVol data. The implied swing is far smaller than before the company’s first earnings report in August, when the stock later fell 13%. Trading flow pointed higher this week: Of the 1.1 million options contracts traded Monday, 665,000 were calls, and data showed more calls were bought than sold. Traders also bought more calls than puts and sold more puts than they bought. The setup comes as SpaceX faces two upcoming share lockup expirations, including one two days after earnings and another on Oct. 26, together making more than 1.6 billion shares eligible for sale.