SpaceX closed at USD 114.53, up 5.68%.
A colossal $13.25 million short strangle dominated the session, harvesting extreme premiums as implied volatility ranks at a historic extreme. Alongside this, a $9.17 million out-of-the-money put sale underscored a firmly bullish conviction, with institutional players selling rich downside premium and signaling confidence that SPCX will hold its ground.
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Options Indicators
SPCX is showing very rich option pricing conditions: implied volatility stands at 120.91%, and with an IV percentile of 99.53%, current volatility is not just high in absolute terms but also at the extreme upper end of its own historical range. Combined with the IV/HV ratio of 2.49, this suggests the options market is pricing in substantially more forward volatility than has recently been realized, reinforcing the view that premiums are elevated and options are expensively priced at current levels. The Call/Put volume ratio is 1.44.
Large Trades
A two-leg short strangle worth $13.25 million was the largest displayed options trade, consisting of the sale of 3,325 October 16, 2026 $120.00 puts and the sale of 3,325 October 16, 2026 $120.00 calls. Using the preprocessed figures, this structure brought in a net premium received of $13.25 million, with $7.41 million collected from the short put leg and $5.84 million from the short call leg. With SPCX referenced at $114.53, the short put was in the money while the short call was out of the money. Strategically, this is a premium-selling volatility trade that seeks income generation from time decay and stable price action, with the seller effectively expressing the view that the underlying will remain relatively contained around the strike over time, while accepting risk if the ETF moves sharply in either direction.
A short put sale worth $9.17 million was the second major displayed trade, involving 3,000 contracts of the September 17, 2027 $110.00 put. With the stock reference at $114.53, this strike was out of the money at execution, and the trade was labeled bullish in the preprocessed data. Selling an out-of-the-money long-dated put typically reflects willingness to accumulate exposure on weakness or to monetize elevated premium while maintaining a constructive outlook above the strike. The seller receives premium upfront and is implicitly signaling confidence that SPCX can stay above $110.00 into expiration, making this trade a moderately bullish income-and-entry strategy rather than an outright aggressive upside chase. Overall, sentiment in the full large-trade flow was clearly bullish. The dominant pattern was heavy premium selling in puts and other constructive positioning, while even the largest volatility-oriented combination was not enough to overturn the broader positive tone from the full tape. Taken together, the large-trade activity points to institutional participants leaning bullish on SPCX, with a preference for harvesting premium and expressing confidence that downside will remain limited rather than paying aggressively for near-term upside speculation.
Strategy Reference
For those seeking a low assignment probability, selling the out-of-the-money $110.00 put mirrors the large-trade bullish flow; alternatively, a put credit spread using the $110.00/$100.00 strikes can define risk while still capitalizing on elevated premium without posting the full margin of a naked short put.