by Coinstrooper Crypto Articles
Quick Take
  • Binance founder Changpeng Zhao (CZ) said Saturday that SpaceX will be one of the best stocks to hold for years.
  • Hours earlier, the shares closed at $134.72, just under their $135 June listing price.
  • That leaves anyone who bought at the listing slightly underwater.
  • Options traders, however, are paying for a 14% swing in either direction by mid-December.

What Happened

On Friday, CZ cited those shares while tallying the hack shortfall, as BeInCrypto reported. Some users read it as a threat to sell. CZ rejected that.

Lockups bar early investors from selling for a set period after a listing. SpaceX’s final batch of locked-up shares becomes sellable on December 8, according to the schedule published on Nasdaq.

Market Context

Binance founder Changpeng Zhao (CZ) said Saturday that SpaceX will be one of the best stocks to hold for years. Hours earlier, the shares closed at $134.72, just under their $135 June listing price.

Options contracts expiring December 18 price a move of about $19, or 14%, according to OptionCharts. That implies a range of $117 to $155.

Even the lowest target, Piper Sandler’s $140, is above the current price.

Valuation is the bear case. SpaceX trades at about 518 times its annual profit, per MarketBeat, even after third-quarter revenue jumped 161% to $14.57 billion.

The post SpaceX Stock Fell Below Its IPO Price, But Binance’s CZ Is Bullish appeared first on BeInCrypto.

Why It Matters

That leaves anyone who bought at the listing slightly underwater. Wall Street analysts still see 86% upside. Options traders, however, are paying for a 14% swing in either direction by mid-December.

Is Binance Selling Its SpaceX Shares?

Details

Binance holds more than $1 billion in SpaceX stock. The stake began as a $500 million bet on Elon Musk’s 2022 Twitter takeover.

“I never said “selling SPCX shares”… I don’t make threats… And I think it will be one of the best stocks to hold for a long time to come,” CZ articulated.

Binance co-CEO Yi He has said this year’s revenue covers the losses from the $6 billion heist.

Why Are Options Traders Bracing for December?

The last major unlock went the other way. When over 911 million insider shares unlocked on August 6, SPCX rose more than 6% toward $115.

How Much Upside Do Analysts See?

Of 35 analysts tracked by TipRanks, 29 rate SpaceX stock a Buy. Their average target of $250.34 sits about 86% above Friday’s close.

The December 8 unlock lands 10 days before those options expire.