Monitored by Woofun AI, SpaceX (SPCX.O) options emerged as a dominant force in U.S. derivatives markets on Tuesday, propelling the stock up 17% during early trading on its third day of public listing. By 10:35 a.m. New York time, cumulative options volume surpassed 600,000 contracts, securing the position of the third-most traded options target for any U.S. corporation. This surge in activity reflects heightened speculative interest following the company's initial public offering.

Chris Murphy, Co-Head of Derivatives Strategy at Susquehanna International, highlighted a pronounced upside skew in option volatility, indicating that investors are paying a premium to position for a potential short squeeze. Three-month implied volatility opened between 110% and 115%, with the most active contract being a $220 strike call expiring Thursday, which saw 25,000 contracts traded—equivalent to 2.5 million shares. Jake Taylor, Head of U.S. Single Stock Options at Optiver, projected that both institutional and retail participation would sustain elevated volatility as the market establishes a definitive valuation framework for the aerospace giant.