The highly anticipated initial public offering of SpaceX sent ripples through the market, causing significant drops in related “proxy” stocks that investors previously flocked to. Despite these immediate losses, options traders and space-focused exchange-traded funds (ETFs) are demonstrating continued robust demand, signaling underlying investor confidence in the broader space economy even as the “real deal” SpaceX stock becomes available.
There's nothing quite like the arrival of the real thing, and the highly anticipated initial public offering (IPO) of SpaceX has certainly proved that point in the financial markets.
On Friday, as SpaceX (ticker: SPCX) made its historic debut, previously popular "proxy stocks"—companies whose fortunes were tied to the space giant—experienced a significant unwinding of their recent gains. These proxy plays, which had seen booming options volumes ahead of the IPO, are now facing a reckoning, though some are showing more resilience than others.
SpaceX launches their IPO at the Nasdaq in New York City on June 12, 2026. Adam Jeffery | CNBC
Shares of EchoStar (SATS), a Colorado-based networking company estimated to own 3% of SpaceX stock, plunged 14%. AST SpaceMobile (ASTS), which plans to launch satellites on a SpaceX rocket soon, saw its shares drop nearly 13%. Perhaps the most dramatic reversal came from Virgin Galactic Holdings (SPCE), which erased Thursday's substantial gains with a steep 34% loss.
Despite these stock declines, options traders appear unfazed. Call options continued to outnumber puts across all three names, with AST SpaceMobile being particularly active, seeing over 250,000 contracts traded, amounting to more than $60 million in premium. More than twice as many calls were purchased compared to puts on Friday morning, signaling bullish sentiment.
"There's a ton of short-dated call buying in these names as a way to get long SpaceX," explained Danny Kirsch, head of options trading at Piper Sandler. He added, "I have no doubt part of it is retail demand but there is definitely institutional demand for SATS." Indeed, EchoStar (SATS) shares initially rose by another 5% in early Friday trading, while AST SpaceMobile also saw early gains.
The demand isn't limited to individual stocks. Cory Johnson, chief market strategist at Epistrophy Capital Research, noted that concurrent interest in space-focused exchange-traded funds (ETFs) is creating a supply bottleneck that helps keep prices for these proxy plays elevated. ETFs such as the Procure Space ETF (UFO), up 38% in 2026, and the Defiance Drone and Modern Warfare ETF (JEDI), up around 33%, both hold shares of AST SpaceMobile.
"People who can't buy SpaceX or didn't think they could get enough quick enough, have been plowing money into these ETFs and so these funds are having to buy shares of AST, EchoStar, Spire, etc.," Johnson clarified. "It has nothing to do with the quality of these companies, demand for their products, or their cash flows."
One thing is unequivocally clear: demand for SpaceX options, which are slated to begin trading on Tuesday, is expected to be astronomical. The IPO priced at $135 a share, a price point that appeals strongly to retail traders often willing to pay higher premiums for nominally lower-priced stocks.
The implied volatilities for EchoStar and AST SpaceMobile, which closed at $128.13 and $97.56 respectively on Thursday, stood at 91 and 126. "SpaceX has the potential to become one of the most actively traded options names among retail investors," commented Anthony Denier, group president and U.S. CEO of Webull. He believes "The combination of a likely high share price, significant volatility and immense public interest creates an ideal environment for options trading." Denier also suggested that if borrowable shares become scarce, put options might offer a more practical bearish expression than shorting the stock directly.
This situation echoes that of Tesla, Elon Musk's original cult stock, which remains one of the most actively traded names among retail options traders.
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