Daily Options Selling Strategy | Reports suggest SpaceX may file its IPO prospectus as early as this week! Space stocks on the move? A step-by-step guide to positioning with options

I. Market Barometer

In the previous trading session, the three major U.S. stock indexes closed lower collectively, with the commercial space sector retreating in sync with the tech-driven trend. According to reports, SpaceX’s IPO prospectus is expected to be delivered as early as this week. Elon Musk stated that SpaceX could achieve full and rapid rocket reuse technology this year, laying the foundation for humanity to become an interplanetary civilization.As trading interest in space stocks picks up again, how can investors use options strategies to navigate sector pullbacks and position themselves in space-related stocks at lower prices?

II. Focus on Hot Targets

$Rocket Lab (RKLB.US)$: Stock price retreats after nearly 70% surge

$Rocket Lab (RKLB.US)$ The company's shares fell nearly 6% in the previous trading session after having surged nearly 70% over five trading days.

From a news perspective, there were no significant negative developments in the company’s fundamentals recently. This pullback was mainly driven by overall weakness in large-cap tech stocks and short-term sentiment cooling within the commercial space sector.The company continues to maintain a robust order backlog and steadily advances its launch schedule. The long-term investment thesis remains intact as a core player in the global commercial launch market, with strong support from industry momentum.

The company released its fiscal Q1 2026 earnings report after the market close on May 7, setting multiple historical records across key metrics.Revenue surpassed the $200 million mark for the first time, reaching $200.3 million, a year-over-year increase of 63.5%, exceeding market expectations of $189.6 million and surpassing the upper end of the company’s own guidance. Revenue sources became more diversified, with profitability showing notable improvement. GAAP gross margin rose to 38.2%, a new all-time high.

The total order backlog reached $2.2 billion, increasing 108% year-over-year and 20.2% quarter-over-quarter, far surpassing market expectations of $1.99 billion.In terms of structure, government contracts accounted for 49% of revenue, up from the previous quarter. During the quarter, the company signed 36 new launch contracts, including 31 Electron/HASTE contracts and five Neutron-specific contracts, with quarterly contract signings already surpassing the total number of launches in 2025. Additionally, the company partnered with Raytheon Technologies, securing selection for the U.S. Space Force’s 'Golden Dome' space-based interceptor program, marking a significant breakthrough in the national security domain.Strategic expansion is proceeding in tandem.The company announced the acquisition of space robotics firm Motiv Space Systems, strengthening its vertical integration capabilities in space systems.

The progress of the Neutron rocket's maiden flight is the core catalyst for the recent rise in share price.The company reiterated that the year-end maiden flight target remains unchanged and has submitted a launch license application to the FAA, with a window period from July 1 to December 31. CEO Beck stated the team is advancing according to an 'aggressive timeline.'

Wall Street firms are generally optimistic, with the consensus rating being 'Strong Buy,' an average target price of $102.36, and the highest target set at $120.

The current share price has exceeded the analysts' highest target price, with significant short-term gains leading to profit-taking pressure on technical levels. A short-term pullback in share price is a normal phenomenon.The recent progress of SpaceX’s IPO filing may further catalyze trading enthusiasm for space stocks, with options implied volatility significantly increasing. The current implied volatility percentile is at a high of 91%, favoring options selling strategies.

III. Seller Options Strategy

1. Cash Secured Put: Sell 1 contract $Rocket Lab (RKLB.US)$ 20260618 90P, estimated required margin (for reference only): $9,000 ($90 × 100)

Opportunity filtering logic:

Rocket Lab, as a core player in the global commercial launch market, has a full order book and continues to deliver on its commercialization progress. This pullback represents a normal correction following excessive short-term gains, with no substantial deterioration in fundamentals.

If investors are optimistic about the company’s long-term development and wish to capitalize on the SpaceX IPO trading trend by positioning in space stocks but are concerned about short-term volatility risks from directly purchasing shares at elevated prices, they can sell put options to collect premiums.If the stock price continues to recover or remains range-bound, the strategy can enhance the annualized return on idle funds; if the stock price retraces to around $90, near the level before this upward cycle began, it also allows for planned entry at a more favorable price, aligning with long-term holding requirements.

IV. Risk Control Reminder

Although the seller strategy has a high probability of success, investors must still manage risks effectively:

– Position management is key:The biggest risk for option sellers lies in black swan events. It is recommended that margin exposure for a single underlying should not exceed 20% of total capital. Never sell options beyond your capacity for the sake of greedy premiums.

– Timely rolling of covered call options: When a covered call option becomes deeply in-the-money (stock price far exceeds the strike price), and if the underlying stock is still viewed favorably, decisively 'roll' the position — that is, close the current option by buying it back and simultaneously sell an option with a later expiration date and a higher strike price to avoid having the stock called away at a low price.

– Cash-secured put options warn of 'left-tail risk':For cash-secured puts, if the stock price collapses due to deteriorating fundamentals (rather than a normal pullback), do not hold on stubbornly. At this time, stop losses should be executed, or 'rolling down' can be employed to buy time and wait for volatility to normalize.

Make good use of the options seller zone to understand the income strategies for selling optionsEarn option premiums!

Options Risk Warning

An option is a contract that grants the holder the right, but not the obligation, to buy or sell an asset at a fixed price on a specific date or at any time before that date. The price of an option is influenced by various factors, including the current price of the underlying asset, the strike price, time to expiration, and implied volatility. Implied volatility reflects the market’s expectations for the level of volatility in the option over a future period. It is a data point derived inversely from the Black-Scholes option pricing model and is generally regarded as an indicator of market sentiment. When investors anticipate greater volatility, they may be more willing to pay a higher price for options to hedge risks, resulting in higher implied volatility. Traders and investors use implied volatility to assess the attractiveness of option prices, identify potential mispricings, and manage risk exposure.

Disclaimer

This content does not constitute any offer, solicitation, recommendation, opinion, or guarantee for any securities, financial products, or tools. The risk of loss in trading options can be substantial. In some cases, losses incurred may exceed the initial margin deposited. Even if you set contingency orders, such as 'stop-loss' or 'limit' orders, these may not necessarily prevent losses. Market conditions may make such orders unexecutable. You may be required to deposit additional margin within a short period. If you fail to provide the required amount within the specified time, your open positions may be liquidated. However, you will still be responsible for any shortfall in your account resulting from such liquidation. Therefore, before trading, you should study and understand options and carefully consider whether such trading suits you based on your financial situation and investment objectives. If you trade options, you should be familiar with the procedures for exercising options and the rights and obligations upon expiration. Options trading involves extremely high risks and is not suitable for all investors. Investors should read Characteristics and Risks of Standardized Options carefully before engaging in any options trading strategy.

Editor/Doris

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