Key facts
- SpaceX's IPO raised over $85 billion, setting a new U.S. record.
- SpaceX's options trading debut saw over 1.6 million lots traded, a new first-day record.
- The previous first-day options trading record was 364,000 lots set by Meta in 2012.
- SpaceX was the third-most-traded stock in the options market on Tuesday, after Tesla and Nvidia.
- Several of the most-traded options contracts for SpaceX expire on Thursday.
SpaceX's options trading debut shattered records, with over 1.6 million lots traded on Tuesday, far exceeding the previous first-day record of 364,000 set by Meta in 2012. This surge in activity follows the company's historic IPO, which raised more than $85 billion.
The introduction of options trading often leads to increased market volatility, a phenomenon familiar from the retail investor activity seen during the GameStop era. Options can be used for hedging but are also a tool for speculation, a use case that gained significant traction during the post-COVID retail trading boom.
Among the most actively traded contracts were call options betting on SpaceX's stock price to rise to $220 and $210 by June 18, and put options targeting a drop to $200 and $180 by the same date. All seven of the most-traded contracts were set to expire on Thursday, with some requiring modest stock movements and others substantial rallies to be profitable.
SpaceX was the third-most-popular single stock in the options market on Tuesday, trailing only Tesla and Nvidia. A notable contract, the 16th most-traded, was a put option with a September expiration, betting on SpaceX stock to reach $205. This contract is likely serving as a hedge against the first tranche of lock-up expirations, according to Susquehanna.