SpaceX Options Trading Starts Strong as Traders Chase Musk Mania

Space Exploration Technologies Corp. options were among the most heavily traded among US companies on Tuesday, helping to spur an early 17% gain in the rocket maker in its third day of trading.

More than 600,000 lots of options traded as of 10:35 a.m. New York time as traders jumped in to bet on further gains in SpaceX, making it the third-most heavily traded company. The bullish wagers could send the stock soaring even higher if market makers that sold call options to investors buy more shares to hedge their positions.

“Options volatility is skewed sharply to the upside, suggesting ...