Key facts
- Options on SpaceX shares began trading Tuesday with record volume.
- 1.3 million SpaceX option contracts traded by 2 p.m. ET on Tuesday.
- Call options outnumbered put options 1.4-to-1.
- Over $2 billion in options premium was traded.
- SpaceX shares rose more than 14% on Tuesday.
- SpaceX's valuation surpassed Amazon.com and briefly Microsoft.
Trading in options on Elon Musk's SpaceX shares commenced with record volume on Tuesday, underscoring strong investor demand for a new way to speculate on the aerospace company's future. Some 1.3 million SpaceX contracts traded by 2 p.m. ET, surpassing Meta Platforms' 2012 debut volume. Over $2 billion in options premium was traded, with call options leading put options 1.4-to-1. Options give holders the right, but not the obligation, to buy or sell shares at a predetermined price within a set time period, offering a low-cost way to gain exposure, hedge risk, or speculate on price movements. The robust options activity, likely retail-driven, follows a strong debut for SpaceX shares on Friday, which surged over 25% to a valuation exceeding $2 trillion. On Tuesday, SpaceX shares climbed more than 14%, pushing its market valuation past Amazon.com and briefly above Microsoft, ranking it among the top-five most valuable companies.