Option Focus | SpaceX's $9 Million Synthetic Long Through June 2027 $160 Calls and $120 Puts Signals Bullish Institutional Conviction Despite Elevated IV

Option Witch
09/23

SpaceX closed at $154.72, up 1.89%.

Options flow showed notable bullish institutional conviction, headlined by a $9.00 million synthetic long using June 2027 $160 calls and $120 puts. A second large trade collected $1.76 million in premium by selling October 2026 $155 and $135 puts. The dominant long-dated synthetic call outweighed the premium-selling put spread, leaving the overall large-trade profile constructive rather than defensive even as implied volatility remains elevated relative to recent realized movement.

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Options Indicators

SpaceX currently has an implied volatility of 53.67%, and with an IV percentile of 69.19%, its volatility backdrop sits in the upper end of the neutral range, just below the threshold where options would be considered clearly expensive. Combined with an IV/HV ratio of 1.31, the options market is pricing in implied volatility at a noticeable premium to recent realized volatility, suggesting options are not cheap and that buyers are paying up somewhat for anticipated movement.

The Call/Put volume ratio is 1.07.

Large Trades

A synthetic call position with a $9.00 million net debit was the largest featured trade, built by buying the June 17, 2027 $160.00 call and selling the June 17, 2027 $120.00 put for the same 5,250-contract size. With SPCX referenced at $154.72, the long call leg was out of the money while the short put leg was also out of the money, creating a clearly bullish structure that replicates long stock exposure with leverage. Strategically, this trade signals a longer-dated upside bet, with the trader willing to finance part of the call purchase by taking on downside assignment risk at $120.00.

A premium-selling put combination worth a $1.76 million net credit was the other displayed block, consisting of short October 16, 2026 $155.00 puts and short October 16, 2026 $135.00 puts, 1,500 contracts each. This is a same-direction short put spread structure rather than a directional synthetic, and because it includes two sold put legs it is best understood as a premium-collection strategy with a neutral-to-mildly-bearish or range-bound view. Relative to the $154.72 reference price, the $155.00 short put was in the money and the $135.00 short put was out of the money, indicating the trader was comfortable taking in premium while expressing confidence that downside pressure would remain contained rather than collapse sharply.

Overall, the large-trade flow leans bullish. The clearest signal is the dominant long-dated synthetic call, which was materially larger than the other highlighted structure and points to willingness to add upside exposure through June 2027. While there was also notable premium selling in puts and some broader bearish activity in the full tape, the bulk-order profile still suggests traders were more focused on positioning for medium- to long-term upside or at least stability above lower strike support, leaving the net institutional tone constructive rather than defensive.

Strategy Reference

For premium sellers targeting a lower assignment probability, the June 2027 $120 put sold in the featured synthetic offers a distant OTM strike; alternatively, a bull put spread such as selling the October 2026 $135 put and buying the October 2026 $120 put can cap margin while still collecting premium if the stock holds above $135.00.

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