Unusual put volume in SpaceX (SPCX) signals institutional interest in a short-put strategy, as analysts maintain a bullish outlook with price targets suggesting 45% upside from current levels.
Unusual put volume at a deep discount suggests institutional interest, but the author interprets it as a bullish short-put strategy, with analysts' price targets implying over 45% upside.
SpaceX (SPCX) recorded a surge in out-of-the-money put options volume, with over 9,600 contracts trading at a $115 strike price. Analysts interpret this activity as a bullish short-put strategy rather than a bearish bet, as institutional investors seek to establish lower entry points. With price targets averaging over $220, the stock maintains a 45% upside potential despite ongoing negative free cash flow.
The volume is concentrated in out-of-the-money puts expiring before the next earnings release, suggesting investors are selling these puts to collect premiums and acquire the stock at a discount rather than betting on a crash.