spacex

SpaceX is having a rough ride on the stock market lately. Since hitting its peak back in June at $225.64, the company has watched more than $1.2 trillion vanish from its overall market value.
The downward trend continued when the stock dipped over 1% to close at $113.50, marking a painful drop in 13 out of the last 16 trading sessions. Wall Street is feeling the pressure, and traders have been scrambling to cover their bases by heavily trading options, exchanging 106,000 calls and 77,000 puts, with a massive $442 million in premium leaning heavily toward those defensive puts.
Even with all the panic in the air, not everyone is entirely pessimistic about where things are heading. Interestingly, four out of the five biggest trades by premium actually leaned neutral or bullish. This included smart moves like put spread sales and a strategic trade that pocketed $1.8 million by selling 5,200 of the 100 strike puts expiring in October while picking up 7,000 of the 85 strike puts. It shows that while short term sentiment is battered, plenty of seasoned market players are positioning themselves for a potential rebound.
All eyes are now locked on the horizon as SpaceX prepares to drop its very first earnings report since its initial public offering. Adding to the suspense, August 6 will mark the date when investors can finally sell up to 20% of their locked up stock, opening the floodgates for up to 911.5 million shares.
Charles Moon over at Prosper Trading Academy points out that it is still early days for investors, noting that Wall Street is currently cracking down on AI related capital spending, though he believes the upcoming lock-up expiration might not be quite as catastrophic as some are fearing.
This video provides a helpful breakdown of the high stakes financial factors and market expectations surrounding SpaceX's massive public debut.
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