SpaceX leveraged ETFs and options add to the investing frenzy
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Eleven different leveraged SpaceX ETFs launched Monday, riding a wave of investor fever for Elon Musk's rocket biz.
Why it matters: The IPO on Friday was just the beginning — over the next days and weeks, Wall Street is launching all kinds of ways to invest in the company and speculate on the direction of its stock price.
Zoom in: On Sunday night, Asian investors — mostly asleep on IPO launch day — started buying, pushing up the stock price in after-hours trading.
- Then Monday, the leveraged ETFs launched.
- Tuesday, SpaceX options are set to begin trading. Those give investors the ability to make leveraged bets on which way the stock moves.
- And then, as we've reported, there will be the inclusion in stock indexes in the coming days and weeks.
The big picture: This includes a lot of fanfare and product launches for an IPO — it's not typical.
- "This is a paradigm shift in what it means for a company to IPO and how you can now express a directional opinion around that newly listed company," says Mike Treacy, head market analyst at Apex.
- SpaceX staying private for so long definitely led to some pent-up demand, says Simeon Hyman, global investment strategist at ProShares, which launched the Ultra SpaceX ETF Monday.
Reality check: More ways to make money also means that there are more ways to lose money. All these products amplify risks in the market.
By the numbers: The stock closed at $192.46 Monday and is now up nearly 43% from its initial offer price of $135.
