economy
SpaceX 'proxies' plunge as real deal arrives: Here's where traders are buying the dip
SpaceX "proxy stocks," whose options volumes were booming ahead of Friday's historic initial public offering, are unwinding gains.
TL;DR
- SpaceX 'proxy stocks' like EchoStar, AST Spacemobile, and Virgin Galactic saw their share prices fall significantly.
- Options trading volume remained high in these proxy stocks, with a strong preference for call options.
- Retail and institutional investors are using these proxy stocks to speculate on SpaceX's performance.
- Demand for space-focused ETFs is driving up the prices of companies held within them, including proxy stocks.
- SpaceX's IPO is expected to lead to highly active options trading due to its likely high share price, volatility, and public interest.