SpaceX options surge fuels gamma-squeeze chatter with $400 target

SpaceX (SPCX) shares rose 11.44% to $214.53 on their first day of trading, while options volume hit 500,000 contracts in the first hour. With only 3% to 5% of the company’s valuation available as tradable float and unusually high gamma sensitivity, traders are increasingly talking about a potential gamma squeeze, with some calling for $400. The Nasdaq index and Robinhood Markets (HOOD) are seen as direct beneficiaries of index-related demand and the spike in options activity.