SpaceX is launching their IPO on Nasdaq in New York City on June 12, 2026.
Adam Jeffery | CNBC
There’s nothing like the real thing.
SpaceX “proxy stocks,” whose options volumes were booming ahead of Friday’s historic public offering, are reversing gains. Some seem to have more regenerative powers than others.
Shares of EchoStar, a Colorado-based networking business that owns about 3% of SpaceX, were reversed and down 14%. AST Spacemobile, whose satellites are expected to be launched on a SpaceX rocket next week, shares fell about 13%. Shares of Virgin Galactic Holdings completely retraced Thursday’s big gains with a 34% loss.
Options traders seem unconcerned: Excessive calls are included in all three names, with AST the most popular, trading more than 250,000 contracts for a payout of more than $60 million. More than twice as many calls were bought than placed on Friday morning.
“There’s a lot of short-term call buying in these names as a way to get long SpaceX,” Danny Kirsch, head of trading at Piper Sandler, said by phone. “I have no doubt that part of it is the need for retail but there is also a need for a SATS facility.”
SATS is the ticker symbol of EchoStar, whose shares were up another 5% in early trading on Friday. Shares of AST SpaceMobile were also trading higher at the time.
The same demand for exchange-traded funds targeting the space sector also creates a supply bottleneck that helps keep prices of proxy games high, according to Cory Johnson, chief market strategist for San Francisco-based Epistrophy Capital Research.
ETFs like Buy the Space ETF as well as Defiance Drone and Modern Warfare ETF both shares belong to ASTS. Procure Space, which trades as UFO, is up 38 percent in 2026, while Defiance, which trades as JEDI, is up nearly 33 percent.
“People who can’t afford SpaceX or don’t think they can afford it fast enough, have been plowing money into these ETFs so these funds should be buying shares of AST, EchoStar, Spire, etc.,” Johnson said on the phone. “It has nothing to do with the quality of these companies, the demand for their products, or their cash flow.”
One thing seems clear: Demand for SpaceX options that will begin trading on Tuesday may not be astronomical. The IPO was priced at $135 a share, a sweet spot for sellers who don’t mind paying expensive premiums for undervalued stocks.
Shares of EchoStar and AST, which closed at $128.13 and $97.56 on Thursday, traded on volatility of 91 and 126, respectively.
“SpaceX has the potential to become one of the top-selling options names among retail investors,” said Anthony Denier, group president and US CEO of Webull, in an email. “The combination of potentially high share prices, significant volatility and high public interest creates an ideal environment for options trading. When stocks become scarce or expensive, put options may provide investors with a more useful way to express a bearish view than shorting the stock outright.”
Tesla, the first stock of Musk’s cult, is one of the most traded names among options traders.
