This article first appeared on GuruFocus.
SpaceX (NASDAQ:SPCX) options traders are positioning for a potentially large move around the company's first quarterly report, with an unusually large block of $330 calls dominating near-term activity.
SpaceX is scheduled to report second-quarter results Aug. 4, after the market closes, followed by the expiration of an insider lockup on Aug. 6. About 91.5 million shares could become eligible for trading.
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SpaceX shares were recently around $110, down roughly 51% from their June peak. Options expiring Aug. 7 showed 656,309 calls against 199,910 puts, producing a put-call ratio of 0.30. The largest position consisted of 450,769 calls at the $330 strike.
The options activity comes as bearish positioning has also increased. SpaceX short interest reached about $24.2 billion, equal to 32.2% of the public float, while short sellers added 37.7 million shares on July 29 and 30.
Meanwhile, the options market is pricing in a move of about 14% following earnings, implying a range of roughly $94 to $126 based on the recent share price. The large call position may also reflect hedging by investors holding short positions ahead of the report.