People who believe in Elon Musk’s astronomical vision space x Investors place cheap bets on large moves, and the total premium is State Street SPDR S&P 500 and Invesco QQQ Trust.
According to data from ThinkOrSwim and SpotGamma, approximately 1 million options on SpaceX have been traded at the time of this writing, representing a premium of more than $1.4 billion. We are evenly matched in terms of contract amount. Nvidia For the company with the second largest trading volume tesla. In dollar terms, SpaceX’s extremely high implied volatility means it exceeds the two combined, and slightly exceeds QQQ’s $1.3 billion.
Calls outnumbered puts, with about 600,000 calls trading compared to 400,000 puts, and more than 150,000 calls traded above ask, meaning the calls were likely bought. Data from SpaceX’s Nations Index RiskDex index, which compares the price of one standard deviation contract, shows a bullish bias in out-of-the-money call prices, which are twice the price of equivalent puts.
“We’ve never seen anything like this,” Scott Nations, president of Nations Index, said by phone. “Part of this is they accelerated the schedule. Previously, we would wait at least a week to find an option. We’ve never seen this much volume with new stuff.”
Eight of the top 10 contracts by volume are calls, and all expire on Thursday, June 18th. The largest trades by value are in near-the-money 210-strike calls, but there is a lot of volume in cheap contracts that require big hands to pay off.
More than 20,000 380-strike calls expiring Thursday were traded by midday, with 15-cent contracts or $15 per trade betting that the stock would rise nearly 80% within 48 hours.
“It’s crazy that so many people made the deal,” Nations added. “Buyers are obviously very bullish. I’d rather pay $100 and go long 285 shares. If you’re expecting that kind of rally, that’s crazy.”
