Business & Finance
SpaceX share price stabilizes as options volatility drops
Trading activity calms following index inclusions and the expiration of an insider lockup period.
The short version
- SpaceX stock has traded in a narrow $10 range around $140 for three weeks, significantly reducing its options volatility.
- Implied volatility fell from over 120 prior to its earnings report down to 57, making it far less volatile than during its market debut.
- Market analysts attribute the stabilization to index inclusions and strong insider retention after the company's first equity lockup ended.
Key facts
- SpaceX shares have hovered near $140 within a $10 trading range for three weeks.[CNBC]
- SpaceX's implied volatility dropped from over 120 prior to its earnings report to 57.[CNBC]
- SpaceX was added to major market indexes including the Nasdaq-100 and the Russell 1000.[CNBC]
- SpaceX's put/call open interest ratio recently registered at 1.1, down from a peak of 1.2.[CNBC]
- Out of roughly 500,000 SpaceX options contracts traded on Thursday, 335,000 were calls.[CNBC]
What remains uncertain
- Whether options volatility will remain depressed or experience renewed expansion depends on upcoming market moves and trading sentiment.[CNBC]