On Thursday, SpaceX shares experienced a notable shift in options market activity, with sophisticated traders engaging in bullish strategies that suggest confidence the stock may have found a bottom [1]. Historically, options flows for SpaceX were dominated by out-of-the-money call buying, but the most popular directional trade on Thursday was selling puts, indicating a more bullish stance focused on stock stabilization rather than a significant rally [1]. By midday, $600 million in options premium had traded, with $316 million in puts and $166 million likely tied to put sales, according to SpotGamma data [1].
Two of the largest trades of the day were bullish combination trades known as risk reversals, involving multimillion-dollar put sales alongside long call purchases [1]. Shortly after the opening bell, a trader collected a net $7.7 million by selling $12 million of 90-strike puts expiring in June next year and buying $4.3 million of 220-strike calls with the same expiry, effectively betting that SpaceX shares will not decline another 20% in ten months and could potentially double [1]. Later in the afternoon, a smaller risk reversal was executed, with $3.5 million in 75-strike puts sold (expiring January 2028) and $5 million in 185-strike calls bought, this time at a net debit [1].
These bullish trades, particularly those involving option selling—a tactic favored by larger, more sophisticated investors—suggest that some market participants believe SpaceX stock is stabilizing [1]. Technical indicators support this view: SpaceX shares made a new low on Monday (the day before earnings), but have mostly traded near $110 since July 23, with downside momentum slowing, the 14-day relative strength index bottoming late last month, and implied volatility at its lowest since June 30 [1].
Additionally, SpaceX shares were up on the day the first insider lock-up period ended, an event that many expected would trigger additional selling pressure [1].
CONCLUSION
Recent bullish options activity and technical signals suggest that sophisticated traders believe SpaceX shares may have reached a bottom. The market's resilience, even as the insider lock-up period ended, points to growing confidence in the stock's stability.