Space Exploration Technologies Corp. (NASDAQ:SPCX) options began trading Tuesday on Cboe Global Markets Inc. (CBOE:CBOE) and Nasdaq Inc. (NASDAQ:NDAQ), marking one of the most closely watched options launches in years. 

SPCX stock is climbing. See the chart and price action here. 

Gamma Squeeze Ahead?

Experts expect high implied volatility from the start. Analysts at SpotGamma point out there is no positioning history, no IV anchor and no established gamma exposure profile, meaning options will price extreme uncertainty from day one. 

Wide bid-ask spreads and rich premiums are the baseline expectation.

The structural setup is also notable: SPCX’s tradable float is just 3% to 5% of the company’s valuation, and that thinness matters enormously for options dealers. 

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If retail call-buying dominates early flow, dealers will likely be short gamma on a stock with almost no liquidity cushion, meaning their hedging activity amplifies price moves rather than dampening them. 

The call-buying and dealer hedging could lead to a gamma squeeze, a rapid, often extreme surge in a ...