Cboe Plans to Launch SpaceX Options as Early as Tuesday
Cboe Global Markets is preparing to list options contracts tied to SpaceX as soon as Tuesday, according to a person familiar with the matter, marking a rare financial product linked to one of the world’s most valuable private companies.
The options, which would trade under the ticker symbol SPACE, are designed to give investors exposure to SpaceX’s valuation without requiring a direct stake in the privately held rocket and satellite firm. Cboe has not yet confirmed the exact launch date, and the plans remain subject to regulatory approval and market readiness.
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How SpaceX Options Would Work
Unlike traditional stock options tied to publicly traded companies, SpaceX options would be cash-settled and based on periodic valuation events or a reference index. The contracts are expected to track the company’s estimated share price as determined by secondary market transactions or appraisals.
This structure mirrors similar products Cboe has explored for other private firms, including Reuters reported earlier this year. The exchange has been working to expand its offerings beyond public equities, responding to growing demand from institutional investors for exposure to high-growth private companies.
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Why This Matters for Investors
SpaceX, founded by Elon Musk in 2002, has become a dominant force in the aerospace industry with its reusable Falcon 9 rockets and Starlink satellite internet network. The company was valued at approximately $180 billion in its most recent funding round, making it one of the largest private companies globally.
For investors, the new options provide a regulated way to speculate on or hedge against changes in SpaceX’s valuation, which has historically been accessible only through private secondary markets or venture capital funds. However, the product carries unique risks, including limited liquidity and reliance on infrequent valuation updates.
Cboe’s move also signals a broader trend of exchanges creating derivatives tied to private companies, a space traditionally dominated by over-the-counter trading. The Chicago-based exchange operator has previously launched similar products for companies like Bloomberg has noted.
Regulatory and Market Considerations
The launch is pending clearance from the Securities and Exchange Commission, which has scrutinized new financial products tied to private assets. Cboe has not disclosed the specific index or valuation methodology that will underpin the SpaceX options.
Market participants have expressed cautious optimism. “This is a natural evolution for options markets,” said a derivatives strategist at a major investment bank who spoke on condition of anonymity because they were not authorized to comment publicly. “But the success will depend on how transparent the pricing mechanism is and whether enough liquidity materializes.”
If approved, the SpaceX options would begin trading on the Cboe Options Exchange, one of the largest options markets in the United States, with standard contract terms and expiration cycles.
