SpaceX flippers have sellers remorse after 50% climb, though traders wonder whether hot streak will last

SpaceX “flippers” who sold shares immediately after the company’s massive IPO are kicking themselves after the stock’s meteoric 50% rise – though early options trading shows many are doubtful the frenzy can last.The stock had gained nearly 50% in its first three days of trading as of Tuesday’s close, making Elon Musk the world’s first trillionaire and briefly shooting SpaceX’s valuation past those of Amazon and Microsoft.“We all feel like idiots for not trying to buy it at $135,” Allen Tran, founder of investing community HaiKhu Trading, told the Wall Street Journal – after the 28-year-old bought and sold his SpaceX shares on Friday for a five-figure return after they first debuted on the Nasdaq.Tran estimated he lost out on $60,000 in gains – and he’s just one of many so-called “flippers” who are feeling seller’s remorse after SpaceX’s unprecedented climb to as much as $218 a share, after opening at $150.SpaceX shares fell 3.5% Wednesday, the stock’s first slip since opening, as some investors sounded alarms over the rocket firm’s jaw-dropping valuation.That put SpaceX as the still-formidable sixth slot of most valuable publicly traded companies in the world.During the first day of SpaceX options trading Tuesday, pricing implied a 15% chance the stock rises another 50% by September – but it also showed a 13% chance it falls by the same amount, according to Chris Murphy, strategist at Susquehanna Financial Group.“The largest trades increasingly looked like hedges tied to future supply risk,” Murphy wrote in a note.“Upside calls reflect demand for another sharp move higher, while downside puts reflect concern around lock-up supply, valuation risk, and the possibility that the initial post-listing enthusiasm fades.”“The result is a difficult trading setup.

The tails look too expensive to buy, but they also look too dangerous to sell,” he added.About 1.8 million SpaceX options contracts changed hands Tuesday, accordi...