The launch of SpaceX's options trading has already made waves in the financial world, with the company's stock options trading at an impressive pace. In just the first 30 minutes of trading, over 300,000 SpaceX options were traded, with calls outpacing puts and a significant premium being paid for these options. This rapid activity is particularly notable given the relatively new status of SpaceX's options and the fact that it is already competing with established tech giants like Tesla and Nvidia in terms of trading volume.
Tom Sosnoff, a renowned figure in the options trading industry, has dubbed himself the 'Godfather' of options trading for his contributions to bringing options to retail investors. He predicts that SpaceX's options will continue to gain traction and potentially surpass Tesla and Nvidia in terms of trading volume. According to Sosnoff, the key to this success lies in the liquidity and volatility of the market, which he believes will attract more HFT firms and retail investors alike.
The most actively traded contract was the 220-strike call expiring on Thursday, reflecting the positive sentiment surrounding SpaceX's recent 16% rally. In-the-money calls at the 210-strike were also popular, indicating a strong belief in SpaceX's continued growth. However, Sosnoff offers a word of caution, suggesting that investors wait a day or two for the market to stabilize and for option pricing to become more efficient.
The high implied volatility of 135 further underscores the market's enthusiasm for SpaceX's prospects. This volatility, combined with the significant trading volume, suggests that SpaceX's options are attracting a lot of attention and could potentially become a major player in the options trading arena. As the market matures and more investors gain confidence in SpaceX's options, it will be fascinating to see how this story unfolds and whether SpaceX can indeed surpass Tesla and Nvidia in terms of trading volume and market impact.
