04 Jun 2026 11:28 UTC - by Oliver Renick
Options volume is picking up in Nasdaq-listed Echostar, a $35-billion networking business based in Colorado that owns an estimated 3% of SpaceX stock.
➤ SpaceX is preparing for a massive IPO, aiming for a $1.77 trillion valuation, which is fueling speculative trading in related companies like Echostar.
➤ Echostar's stock has seen substantial gains over the past year, despite a recent pullback, driven by a spectrum deal with SpaceX for satellite network upgrades.
➤ Traders are increasing options activity in Echostar, a company holding a significant stake in SpaceX, due to anticipation of SpaceX's upcoming IPO.
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Hype for the biggest IPO of all-time is at a fever pitch and traders can't wait – literally.
Options volume is picking up in Nasdaq-listed Echostar, a $35-billion networking business based in Colorado that owns an estimated 3% of SpaceX stock, which it acquired through a deal providing wireless spectrum to Starlink in September.
Trading activity on Wednesday was more than three times the daily average the past month, according to data from Cboe LiveVol, with more than 60,000 options contracts traded for a total premium of just shy of $50 million.
About five times as many calls traded in the name than puts, but almost three times as many calls were sold compared to bought, according to ThinkOrSwim data. That might reflect traders hedging bullish bets via spreads, with the stock up 650% the past year but in the midst of a 11% pullback the past month.
EchoStar, 1 year
Last year's spectrum purchase by SpaceX allows the company to start building and deploying upgraded, laser-connected satellites that the company said will expand the cell network's capacity by "more than 100 times," according to earlier reporting by Reuters.
SpaceX will aim to raise $75 billion at a $1.77 trillion valuation at a share price of $135, according to the company's IPO filing with the Securities and Exchange Commission late Wednesday.
Categories rationale: The article primarily discusses 'equity' as the asset type, specifically focusing on shares in SpaceX and Echostar. It falls under 'institutional-adoption' due to the significant market activity and the involvement of a major IPO, which is a key event for institutional investors.Characteristics justification: The sentiment is positive (0.6) due to the 'hype' and 'fever pitch' surrounding the SpaceX IPO, leading to increased trading activity and bullish bets reflected in call options. The relevance is high (0.8) as it directly discusses a specific company (Echostar) and its connection to a major event (SpaceX IPO). Entropy is moderately high (0.75) due to the speculative nature of options trading driven by IPO anticipation. Staleness is low (0.3) as it refers to a recent SEC filing and current trading activity. Uncertainty is low (0.2) as the focus is on the anticipated IPO and its immediate market impact.Tag relevance: The tags 'spacex', 'ipo', 'echostar', 'options volume', 'starlink', 'satellite', 'valuation', and 'sec filing' are highly relevant as they directly name the key entities, the event driving the news, the type of trading activity, the underlying technology, and the regulatory context discussed in the article.asset-types: equity
rwa: false
entropy: 0.75
sentiment: 0.6
staleness: 0.3
relevance: 0.8
uncertainty: 0.2RWATimes slug: cnbc-space-x-ipo-hype-has-traders-flocking-to-this-mid-cap-stock-1881723487