SpaceX Corp (SPCX) stock has fallen below its $150 IPO price, but institutional investors likely sold a massive volume of SPCX put options at $80.00. That is $74 below today's price, expiring almost 2.5 years from now.
SPCX is down slightly today at $149.00, as it continues to drop below its original $150 IPO price less than a month ago on June 12. It's also below the first day trading closing price of $160.95.
Can’t Get Enough Options?: Join the list for Barchart’s daily unusual options report, delivered free.
SPCX stock - last month - Barchart - July 8, 2026 The huge volume of put options in SPCX today is at the top of Barchart's Unusual Stock Options Activity Report. It shows that the put option volume of 17,200 contracts at $80.00 (for expiry at the end of 2028) is almost 120 times more than the prior number outstanding.
That puts it at the top of the list of unusual options trading today (see below).
SPCX puts expiring Dec. 15, 2028 - Barchart Unusual Stock Options Activity Report - July 8, 2026 Why This Huge Volume?
Note that this expiry period is December 15, 2028, 891 days from now (i.e., 29.29 months away). Moreover, the $80.00 strike price is 46.3% lower than today's price ($69 lower), making this an “out-of-the-money” (OTM) put play.
This long-dated, deep OTM play is usually initiated by a short seller, often an existing shareholder. That way, the investor can gain extra income and also have a potentially lower buy-in point.
For example, the $16.80 midpoint premium received by the short-seller (initiator) represents 21% of the initial collateral required ($80.00 per share).
So, for example, for every put contract shorted, the investor would have had to post $8,000, and the short-put play would have earned $1,680:
$2,100 / $8,000 = 0.21 = a 21% short put yield for 29.3 months
Short-Put Yield Play and Lower Breakeven
That works out to a per month yield of 0.72%, almost 3/4ths of 1%, and 8.60% per annum:
0.21/29.29 = 00.00717 = 0.717% per mo
0.717%/mo x 12 = 8.603% per yr
In other words, this is a great way for an institutional investor to earn a high yield on spare cash, as well as potentially lower their all-in cost.
Here's why. If SPCX falls to $80 on or before the end of 2028, the account will be assigned to buy 100 shares of SPCX at $80.00. However, the income, already received, lowers the breakeven point:
$80.00 - $16.80 = $63.20 breakeven point
That is 57.5% lower than today's price. It shows why investors love to sell short deep out-of-the-money (OTM) puts with a long-dated expiry period.
Downside Risks
If this occurs, an existing shareholder has the ability to lower their original cost, and a new investor has a low potential buy-in point.
However, if SPCX falls below this potential breakeven point, the investor could have an unrealized loss, even after accounting for the income already received. But, don't forget that the worst that can happen here is that the short-put investor simply owns shares in SPCX.
They can continue to hold these shares. Or they can sell more OTM puts and calls to mitigate any losses.
Given the high yield that this long-dated OTM short play has provided the investor, it's likely they may be able to repeat this play again down the road, even before the end of the expiry period.
And don't forget, in the next two years, investors will have a much more info and earnings releases with which they can forecast the future for SpaceX stock by the end of 2028.
For that reason, I suspect that many other investors are now going to look at shorting these deep OTM, long-dated SPCX puts.
On the date of publication, Mark R. Hake, CFA did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
SpaceX Has Massive Multiyear Put Options Volume As SPCX Falls Below IPO Price Vertiv Stock Just Flashed an ‘Exhaustion’ Signal. Exploit It Here for Profits. 3 Calendar Spread Trade Ideas For This Wednesday Unusual Put Option Activity in Johnson & Johnson After JNJ Stock's Recent Runup