SpaceX bulls are back betting on huge, fast gains as Rocket Lab surges

SpaceX Stocks are recovering from a 35% decline from their post-IPO highs, and options traders are creating all kinds of bullish positions, from short-term and speculative investments to long-term major investments.

SpaceX options volume decreased, according to Cboe LiveVol data; By midday Monday, nearly half a million contracts were traded at about half the daily average since they began trading on June 15. Still, the positioning is clearly bullish.

Investors purchased more than four times as many calls as puts, and total trading volume was twice as much as puts, according to ThinkOrSwim data. Seven of the top 10 contracts by volume were calls, with nine expiring on Thursday. Shares rose 7% to their highest level since last Tuesday, following speculation that SpaceX might acquire a mobile operator as well as a deal between Rocket Lab and Iridium Communications that reignited excitement about satellite communications.

“From a technical standpoint, SpaceX has remained at an all-time low around $147, which tells me there is buyer demand for a pullback,” Charles Moon, a technology and momentum expert at Prosper Trading Academy in Chicago, said by phone. Moon added that he also bought SpaceX shares in addition to the 170-strike calls.

A notable trade in SpaceX summed it up well. When the stock was at $155 on Monday morning, someone sold about $450,000 of the 150-strike puts expiring in January 2027 and then bought the same number of 160-strike puts; This is already a money-making trade as the stock hits its highest level since last Tuesday.

There was no shortage of gamblers either.

The second most popular contract by volume was the 300-inning call-up that expires Thursday; it was a 10-cent trade that required SpaceX to nearly double by the end of the holiday-shortened week.

“The 300-strike buyers are trying to force the gamma squeeze with these trades, but the market makers know better at this point and that is unlikely to happen,” Moon said, referring to the trading phenomenon popularized by Gamestop that can flip market makers’ books if low-probability events go against them.

Investors looking for shocking moves may want to stay tuned Rocket LabsThis resulted in a 16% increase in the session. Option volume was 50% above the 30-day average, with calls outpacing puts by a factor of four.