SpaceX Options See Heavy Volume on First Day of Trading, With Over 600K Contracts Traded in Early Session
Taylor Wilson
SpaceX options traded over 600,000 contracts by 10:35 a.m. New York time on their first day, making it the third-most-active U.S. single-stock options name — and the pricing skew shows traders are paying up for more upside, not hedging the fall.
How heavy was the first-day volume?
By 10:35 a.m. New York time, SpaceX options had traded over 600,000 contracts, ranking it third-most-active among all U.S. companies.
The hottest contract: a call expiring this Thursday at a $220 strike, with 25,000 contracts traded — equivalent to 2.5 million shares.
This means → SpaceX didn't tiptoe into the options market; it landed in the top tier on day three of public trading.
Where did the stock price go?
Shares surged as much as 17% in the early session, hitting $225.64, before paring gains to 6.9% at $205.82.
In plain terms = a sharp opening spike, a cool-off, but still a solidly positive day.
What does the options pricing reveal?
Chris Murphy, co-head of derivatives strategy at Susquehanna, noted that options volatility — implied volatility, the market's bet on how much the stock will swing — is skewed sharply to the upside.
This means → traders are paying more to bet on further gains than to protect against losses. The dominant fear is missing the rally, not getting caught in a drop.
Three-month implied volatility opened at 110%–115%. This reflects expectations of extreme near-term price swings, far above typical tech-stock levels.
How does a short-squeeze loop form here?
As call buying rises, market makers who sold those calls typically must buy the underlying stock to hedge.
If the stock keeps climbing, their derivatives exposure widens, forcing them to buy even more shares to stay balanced.
In plain terms = the more retail traders buy calls, the more market makers are forced to buy stock; the higher the stock goes, the more they must buy — creating a self-reinforcing upward loop.
What does the market-maker land grab signal?
Citadel Securities, Jane Street, Optiver, and Wolverine Trading have secured market-making roles for SpaceX options on exchanges run by Cboe Global Markets and Miami International Holdings.
Optiver is the designated primary market maker for SpaceX contracts on the Cboe Options Exchange.
This means → top-tier firms are competing for SpaceX options seats — a sign Wall Street expects sustained high volume, making the seat itself a profitable franchise.
What comes next?
Jake Taylor, head of U.S. single-stock options at Optiver, said the options launch adds a new price-discovery layer — a mechanism for the market to converge on a fair price through trading.
He expects active participation from both institutions and retail, with volatility staying elevated until the market forms a consensus on valuation and outlook.
In plain terms = SpaceX doesn't yet have a widely agreed "fair price." Until the market settles that debate, big swings are the norm, not the exception.
Content is for reference only, not financial advice.