Space Exploration Technologies Corp. options began trading Tuesday on Cboe Global Markets and Nasdaq, rewriting the record books with roughly 1.8 million contracts changing hands during the first session. This volume easily surpassed the previous first-day record of approximately 365,000 contracts set by Meta Platforms Inc. in 2012. The launch marks one of the most closely watched options debuts in years, fueled by extraordinary investor appetite for exposure to the newly public company despite its recent financial losses.

Record Trading Volume and Demand

The milestone highlights the intense interest in SpaceX derivatives. Roughly $2.8 billion worth of SpaceX options premium traded on Tuesday alone. Bullish call options outpaced bearish puts by about 1.3-to-1, suggesting traders remain focused on upside opportunities. By the end of the session, only Tesla Inc. and Nvidia Corp. generated more options activity than SpaceX, underscoring how quickly the stock has become a favorite among derivatives traders.

"We've never seen anything like it," Henry Schwartz, vice president of derivatives market intelligence at Cboe Global Markets, told Reuters.

Gamma Squeeze Risks

Analysts warn the launch could trigger a gamma squeeze, a rapid price surge driven by options market mechanics rather than company fundamentals. SpotGamma noted the setup represents "one of the highest-gamma-sensitivity environments of the decade." The tradable float for SpaceX is just 3% to 5% of the company's valuation, creating a thin liquidity cushion. Heavy call buying often forces market makers to purchase shares as a hedge, which can accelerate rallies during periods of strong demand.

Market Dynamics and Outlook

The strong debut is fueling expectations that SpaceX could quickly become one of the market's dominant options names, potentially developing one of the deepest single-stock derivatives ecosystems on Wall Street. Compounding the dynamic, an estimated $22 billion to $27 billion in forced mechanical index buying is expected from Nasdaq-100 and Russell trackers in the coming weeks. SpaceX's Nasdaq-100 fast-entry is expected 15 trading days post-IPO.

SpaceX stock was up 11.44% at $214.53 at the time of publication Tuesday.

SpaceX and Tesla CEO Elon Musk stated that mass and energy will replace conventional money as currency. He made the assertion while discussing the feasibility of powering deep space artificial intelligence through solar energy. Musk suggested that manufacturing solar panels and radiators on the Moon and launching them with a mass driver would be necessary to achieve these goals.

The discussion began on X when user James Stephenson asked if sun-synchronous Earth orbit could capture enough solar energy. Musk responded that lunar manufacturing and mass drivers would be required to launch equipment into deep space. He added that conventional money would become irrelevant long before such a milestone is reached.

Market Impact

SpaceX recently conducted an initial public offering (IPO), with its stock rallying significantly. The company's market capitalization has surpassed that of Microsoft Corp and Amazon.com Inc. Musk's net worth has reportedly reached $1.3 trillion, solidifying his position as the wealthiest individual globally.

The stock's performance has attracted high retail interest, with retail turnover exceeding $7 million in the first 10 minutes of a recent trading session. Analysts have raised concerns about SpaceX trading like a meme stock.