SpaceX (SPCX) Options Explode with 1.8 Million Contracts… Will the $205 Defense Line Hold?

▲ SpaceX (SPCX)/Source: X

SpaceX (SPCX) option trading set a new all-time record on its launch day, providing a new hedging tool for investors looking to mitigate the risk of a sharp rise.

According to the economic news outlet CNBC on June 17 (local time), SpaceX option trading volume recorded approximately 1.8 million contracts on its first day. The previous record, set by Meta Platforms (META) in 2012, was about 365,000 contracts.

The option premium trading value reached approximately $2.8 billion. Call option trading volume was 1.3 times higher than put options. Strong call option demand also influenced the rise in SpaceX's stock price.

SpaceX options ranked third in trading volume among individual company options. Only Tesla (TSLA) and Nvidia (NVDA) surpassed SpaceX. Exchange data highlighted significant participation from individual investors.

Trades aimed at preventing a stock price decline were also observed. Large-scale option trades were executed to hedge against the risk of falling below $205 by September. This was analyzed as a defensive strategy ahead of the release of some lock-up shares in August.

After its IPO, SpaceX's stock price rose rapidly, surpassing Amazon.com (AMZN) in market capitalization. At one point, it even overtook Microsoft (MSFT). Limited circulating shares and high option demand were cited as factors that could increase future price volatility.

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