Options Volume Surges in SpaceX-Linked Stocks as IPO Prices at $135 per Share

Options volumes surged in stocks tied to SpaceX on Thursday, one day before the company's IPO priced at $135 per share. com. EchoStar, the Colorado-based networking firm that owns an estimated 3% of SpaceX, rose 11% on Thursday.

Options volume in its shares (SATS) reached more than eleven times the 30-day average, Cboe's LiveVol data showed. The stock closed at $128 and carried an implied volatility of 97. 56 on Thursday.

The company recorded almost $140 million in options trading that day and trades with an implied volatility of 129. Its satellites are scheduled to launch on a SpaceX rocket next week. 5 times put volume.

The stock has fallen 99% from its peak. EchoStar shares rose another 5% in early Friday trading, while AST SpaceMobile also traded higher. Danny Kirsch, head of options trading at Piper Sandler, said short-dated call buying reflected demand to gain exposure to SpaceX.

"There's a ton of short-dated call buying in these names as a way to get long SpaceX," he said. Cory Johnson, chief market strategist at Epistrophy Capital Research, linked the moves to inflows into space-themed ETFs. Procure's UFO ETF has gained 119% over the past year, while Defiance's JEDI ETF is up 35%.

Both funds hold AST SpaceMobile shares. Johnson said investors unable to buy SpaceX directly have been purchasing the ETFs, forcing the funds to acquire shares in the underlying companies. SpaceX options are scheduled to begin trading on Tuesday.

CEO of Webull, said the combination of a high share price, volatility, and public interest creates strong conditions for options activity. He noted that scarce borrowable shares could make put options a practical alternative to shorting the stock.