Woofun AI notes that the debut of SpaceX options may catalyze a significant gamma squeeze, potentially elevating the SPCX stock price toward $400. This upward pressure could enable SpaceX to surpass NVIDIA in total market capitalization.

The magnitude of this potential move is largely dictated by which entity holds the largest volume of out-of-the-money call options. Such positions can trigger a robust positive feedback loop within the options market. A gamma squeeze occurs when market makers are compelled to purchase substantial quantities of underlying stock to hedge their risk exposure, thereby creating a self-reinforcing cycle of price appreciation.