SPCE – The next TSLA?

I closed out my positions on SPCE today with some GTC orders that I placed on Friday – I certainly didn’t expect those to get filled today!

It’s hard to say if SPCE is having a blow off top before their earnings, or if they are simply baselining into some new normal. The degree of growth in percentage terms is simply crazy. Up north of 150% in just a few days.

SPCE Hourly Chart

Looking at the hourly chart, it’s just on a tear! It’s started to pull back a little bit, but that doesn’t mean much at this point. It’ll be interesting to see how this closes later today. I’m guessing it’s still up, but nowhere near these highs.

Tastyworks has the IV rank at 155 right now and the options chains have some serious vol priced in.

Tastyworks IV Rank on SPCE

Current volatility has this thing expected to move $8 by the end of the week, and $14 by the end of next week. So basically we are expecting this thing to move +/- 40% in 10 days. Wow!

Option Chains for SPCE

I’m unsure how I want to (and if I want to) play this over the next few days. Given the huge move and the 374% profit I just took down on it, it’s likely time to take a small breather on this guy.

Being such a low priced stock, it was really easy to get some very outsized gains; however the uncertainty between now and the earning cycle has the risk up a little more than I am going to be comfortable with.

I suspect the next way I play this next is with puts, but reserve the right to change my mind on that really quickly given the environment it’s currently in. For now, thanks for the profits. Time to wait and watch.