Tom Sosnoff, Chief Executive Officer at LossDog, predicted that Space Exploration Technologies Corp. (NASDAQ:SPCX) stock will head “under 135″—dropping below its initial public offering price—after revealing he locked in rapid profits by selling his own allocation “at 158.”
The Post-IPO Prediction
Speaking on the episode of The Drift with Benzinga, Sosnoff expressed strong conviction that the newly public aerospace giant is bound for a downward correction before the end of the year.
While he dismissed fears of a total collapse to $100, he stated that the market’s current trajectory is unsustainable. “I feel strongly that the stock will trade under 135,” Sosnoff noted, pointing toward an aggressive expected move of roughly $75 over the next 60 days.
Cashing Out And Exploiting Skew
The LossDog chief executive admitted he wasted no time exiting his initial long position once the equity rallied. “I sold my whole position at 158, and because I… I didn’t care,” Sosnoff shared, contrasting his strategy with his co-host, who kept a partial position.
Instead of buying into the long-term retail hype, Sosnoff immediately shifted to exploiting the stock’s highly volatile derivatives market.
He described early call options pricing as “ridiculous,” driven by an extreme upside skew where calls trade nearly twice as expensive as puts.
“If you’re really bullish in SpaceX, you either want to buy a call spread or sell a put spread because that’s the advantage,” Sosnoff explained, warning that getting short is structurally difficult due to this massive pricing asymmetry.
Institutional Passivity Vs. Skepticism
Despite the stock’s massive cultural momentum, Sosnoff remains firmly fundamentally bearish. “I’m not buying SpaceX… I have no interest in buying SpaceX for the long haul,” he flatly stated.
However, he highlighted an impending institutional catalyst: a unique “NASDAQ exemption” that will force passive index funds to include the stock in their portfolios within three weeks, setting up a major structural tug-of-war.
SPCX Slips For The First Time After Listing
After the Federal Reserve held interest rates steady in June at 3.5% to 3.75%, the markets fell on Wednesday. SPCX shares also declined for the first time since listing last Friday.
It fell by 4.95% to $191.82 apiece and was down 0.81% in overnight trading.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Thrive Studios ID / Shutterstock
Login to comment