Key facts
- SpaceX's IPO raised over $85 billion, a new U.S. record.
- Over 1.6 million lots of SpaceX options were traded on the first day, surpassing Meta's 2012 record.
- SpaceX ranked as the third most-traded stock in options on Tuesday, behind Tesla and Nvidia.
- Roelof Botha, a Sequoia Capital investor, was appointed to SpaceX's board as an independent director.
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.
SpaceX announced the election of Roelof Botha, a Sequoia Capital investor, to its board as an independent director, less than a week after its record-setting initial public offering.