SpaceX Options Shift to Put Selling as Risk Reversals Net $7.7 Million
SpaceX options trading shifted decisively to put selling on Thursday, with two large risk reversal trades dominating the session. The first, shortly after the open, netted $7.7 million in premium from selling $12 million of June puts with a strike of 90 and buying $4.3 million of calls at strike 220. A second, smaller reversal later in the day involved selling $3.5 million of January 2028 puts at strike 75 and buying $5 million of calls at strike 185, executed as a net debit. Put and call volumes were roughly balanced, a change from recent out-of-the-money call buying.
SpaceX stock passed a key test in Thursday's trading, with the options market showing a new directional bias. Options activity had previously been dominated by out-of-the-money call buying, but Thursday's most popular directional trade was selling puts. Put and call volumes were roughly balanced for the day, yet both large trades were bullish combinations, pairing millions of dollars in put sales with call purchases in risk reversal structures.
Shortly after the open, a trader received $7.7 million in net premium, selling $12 million of put options expiring in June next year with a strike price of 90, while buying $4.3 million of calls with the same expiry at a strike of 220. Late in the afternoon, in a smaller mirror trade, a trader sold $3.5 million of January 2028 puts at strike 75 and bought the same quantity of calls at strike 185. The call position was worth $5 million, exceeding the proceeds from the put sale, so the trade was executed at a net debit.
SpaceX stock hit a fresh low on Monday, with earnings due the following day, but has traded mostly around $110 since July 23. Downward momentum has faded, with the 14-day relative strength index bottoming in late July and implied volatility falling to its lowest level since June 30.