A trader executed a complex options strategy on SpaceX (NASDAQ:SPCX) involving 7,641 call and put options expiring in September 2026. The combined premium outlay for the position was approximately $57.7 million. The structure suggests a bet on significant future volatility rather than a directional move.

The trade consists of 7,641 September 2026 $220 calls matched against 7,641 September 2026 $200 puts. This simultaneous purchase of calls and puts, known as a strangle or strangle-like structure, indicates the trader expects the stock to move substantially in either direction.

Trade Structure

The specific details of the transaction are as follows:

The total premium paid for this position was approximately $57.7 million. By purchasing both upside and downside exposure, the trader profits if the stock moves significantly beyond the range of $200 to $220 by the expiration date.

Strategic Implications

This type of position is typically established when an investor believes the market is underpricing the potential for a large price swing. The capital commitment of nearly $58 million eliminates casual speculation, pointing instead to a calculated wager on mispriced uncertainty.

Potential catalysts for such a move could include new funding rounds, IPO developments, valuation resets, launch milestones, or regulatory pivots. The trade effectively bets that the magnitude of the coming move will exceed what the current market has priced in, regardless of the direction.

Investor Michael Burry questioned the $2.8 trillion valuation of SpaceX, describing the company as fundamentally a small space company and a niche telecom. In a post on Substack, Burry stated he was tempted to bet against the stock but decided against it due to the high cost of put options. The comments came as SpaceX continued its post-IPO rally, with shares touching an intraday high of $225.64 on Tuesday.

Burry Reviews SpaceX Options

Burry noted that a December 2028 put option with a $100 strike price was trading at about $25 while SpaceX shares were trading at around $212 at the time of his post. He also observed that a December 2026 put priced at $6.75 caught his attention, but he ultimately declined to place the bet. Burry predicted the stock would settle in the mid $200s and that volume would drain from the put option chain.

Valuation Comparisons

SpaceX, which remains unprofitable and generated $18.7 billion in revenue in 2025, reached a market capitalization of $2.8 trillion on Tuesday. Burry compared this valuation to Berkshire Hathaway and several national economies, suggesting SpaceX's market value could surpass countries including Canada, Italy, and Russia. He further noted that the valuation exceeded the combined fortunes of several of the world's wealthiest individuals.

IPO Performance and Price Action

SpaceX went public on Friday after raising $75 billion through its initial public offering, marking the largest IPO on record. The stock opened at $150 and reached an intraday high of $176.52 on its first day of trading. On Tuesday, SpaceX closed 4.83% higher at $201.80 and gained a further 2.06% in extended trading.