SpaceX Options Show Bullish Turn in Trading

SpaceX options traders changed their approach on Thursday. The most popular directional trade was selling puts. This marks a shift from the usual out-of-the-money call buying.

Total premium traded reached $600 million by midday. Puts accounted for $316 million of that volume. About $166 million was tied to put sales, according to SpotGamma data.

Volumes were split between puts and calls for most of the day. Two large dollar-amount trades were bullish combination trades. These risk reversal structures involved put sales and long call purchases.

The risk reversal offers two points of bullish exposure. The strategy short sells a put and buys a call. It signals confidence in the stock's stabilization rather than a massive rally.

Multi-Million Dollar Risk Reversal Trades

One trader collected a net $7.7 million shortly after the opening bell. The trade involved selling $12 million of 90-strike puts expiring in June 2027. The trader also bought $4.3 million of 220-strike calls for the same date.

This bet suggests SpaceX won't drop another 20% in ten months. The additional wager is that the stock could double from current levels. The trade combines defensive and aggressive positioning.

A smaller version occurred later in the afternoon. Someone sold $3.5 million of 75-strike puts expiring January 2028. They bought the same number of 185-strike calls with the same expiry.

The calls cost $5 million. This exceeded the proceeds from the put sale. The trade was executed at a debit, showing strong conviction.

Technical Signs Point to Stabilization

SpaceX shares made a new low on Monday. That was the day before the company reported earnings. The stock has mostly traded close to $110 since July 23.

Downside momentum has slowed in recent weeks. The 14-day relative strength index bottomed late last month. Implied volatility has fallen to its lowest level since June 30.

These two big bullish trades involve selling options. This tactic is favored by bigger-money players. It suggests sophisticated traders think the stock might be finding a bottom.

Shares are up on the day the first insider lock-up period ends. Many expected this event to trigger fresh selling. The price action has defied those expectations so far.

Relentless bullish call buying has been a contrarian indicator. The new approach of selling puts changes the dynamic. The options market is sending a different signal now.