SpaceX Stock Plunges 34%: Expert 'Hold Steady' Trade Strategy

SpaceX (SPCX) shares have failed to capture investor enthusiasm despite their inclusion in the Nasdaq-100. The stock has declined 34% from its peak of $225.64, shifting focus to fundamentals and the company's lack of profitability. With a market cap near $2 trillion, SpaceX now ranks as the world's most expensive firm, mirroring Tesla's position in the bottom of recent income rankings. This dynamic underscores growing skepticism about its valuation.

Long-Term Risk Strategies

■SPCX's 34% drop highlights the insufficiency of Nasdaq-100 inclusion to sustain momentum.

■Elon Musk's latest public venture faces criticism for its premium valuation amid negative earnings.

■The stock's fall below IPO levels has spurred a surge in multiyear put options volume.

Armor Against Declines via Options Trading

■The bear call spread strategy is gaining traction among investors anticipating further stagnation.

■This approach generates net credit by betting on the stock remaining below a targeted strike price.

■Volatility, particularly implied volatility, plays a crucial role in structuring such trades.

Kemal Tekin: SpaceX's pricing resembles an unsustainable 'offer' disconnected from fundamentals. However, considering similar patterns in EM markets, deploying such strategies in the short term carries significant risk.