SpaceX options price in 50% swing up or down by September
What's new: Traders are betting on both another surge and a steep drop as lock-up supply and valuation risks shadow the post-IPO rally.
SpaceX options began trading with unusually wide expectations for the newly public stock, with pricing implying roughly a 15% chance of a further 50% rise by September and about a 13% chance of a 50% drop, according to Susquehanna. The stock has climbed about 50% from its IPO price since listing on Nasdaq on Friday, pushing its market value past Amazon and near Microsoft's. Susquehanna strategist Chris Murphy wrote that the biggest options trades increasingly appeared tied to hedging future supply risk, while demand for upside calls reflected bets on another sharp move. Downside puts pointed to concern that lock-up expirations, valuation pressure and fading early enthusiasm could hit the shares.