Podcast – Episode 210 — Best Way To Profit From SpaceX – 211

The space race is heating up, and individual investors are eagerly looking for the Best Way To Profit From SpaceX. With recent earnings showing massive growth across Starlink, proprietary chips, and rocket shipping, it’s no wonder the stock has become the darling of the market. But with post-IPO lockup expirations dumping millions of new shares onto the market, the volatility can be stomach-churning.

So, how do we trade a company with a cult following, huge future potential, and massive short-term price swings? At Option Genius, we don’t believe in betting the farm. We trade like market makers—focusing on conservative options selling, superior money management, and strict risk avoidance.

Here is a breakdown of how Wall Street is playing SpaceX right now, and more importantly, how you can trade it safely to generate consistent alternative income.

The “Smart Money” Approach (And Why We Avoid It)

Following recent earnings and lockup expirations, multi-million dollar trades hit the tape. One notable Wall Street trade was a Risk Reversal.

Here is how the big money structured it:

• They sold naked puts going out about a year (the $90 strike).

• They took half the credit from those puts and bought out-of-the-money calls.

On the surface, this is a highly bullish trade. They only lose money if the stock drops significantly (below $86 at expiration). However, by spending their premium on calls, they are giving up guaranteed cash flow for a lottery ticket. They only hit a home run if the stock skyrockets past $220.

As conservative sellers, we want to keep the premium. We don’t want to add risk to both sides of the trade by buying calls and hoping for a miraculous rally.

The Option Genius 1-Year Passive Strategy

If you believe in the long-term viability of the company but want to avoid the day-to-day stress of price swings, selling long-term naked puts (LEAPS) is a highly effective strategy.

Instead of buying shares and tying up massive amounts of capital—or buying calls that suffer from time decay—you can sell a 1-year naked put.

The Setup:

• Sell an at-the-money put (e.g., the $130 strike) expiring in one year.

• Alternatively, sell an out-of-the-money put (e.g., the $100 strike) for a lower credit but a wider safety margin.

The Math: By selling the $100 strike put, you collect a substantial credit upfront. Your break-even drops down to around $84. This means the stock can drop massively from its current price, and you still make money at expiration. Depending on your margin account, this single trade can yield an incredible 41% to 43% return on margin over the course of the year.

You don’t need the stock to go to the moon. You just need it to not crash and stay down.

The Active Income Approach (The Wheel)

If waiting a year isn’t your style, you can apply the exact same philosophy on a shorter timeframe to generate weekly or monthly cash flow.

The Setup:

• Sell 30-day or 14-day out-of-the-money puts (e.g., the $95 strike).

• Collect smaller, frequent premiums (e.g., $50 per contract).

With a 96% probability of profit, you can string together small wins month after month. If the stock does dip and you get assigned the shares at $95, you simply pivot to the second half of the strategy: selling covered calls until the shares are called away.

“I don’t care if I don’t make money on the stock. If I keep selling puts every month or every week and they keep expiring and I keep making money… I’m turning over that money because boom, boom, boom. That’s the real name of the game.”

Final Thoughts

Buying outright stock ties up capital, and buying options is a surefire way to lose to theta decay. By stepping into the shoes of the casino and selling options, you put time and probability in your favor. Whether you choose the 1-year set-it-and-forget-it put, or the monthly cash-flow drip, patience and risk management are your keys to profiting from SpaceX.