SpaceX Volatility Creates New Trading Opportunities: Why Investors Need Both Sides of the Trade

SpaceX shares climbing 6% yesterday despite Thursday being the first day insiders could sell their shares.

Now we've been bullish leveraging funds introducing to track its daily movement.

Now we're getting a bearish ETF.

Now Direction launching LOFD on Thursday, which provide inverse leverage short-term exposure to SpaceX to the tune of 200%.

Now joining me to explain more is Ryan Lee, Directions senior vice president of product and strategy.

Ryan, good morning and thank you so much for being with us.

Thanks for having me.

So Ryan, let's go ahead and get started with the launch of LOFD.

So go ahead and walk us through.

We know that SpaceX, it's been facing some short pressure for around 30%.

So take us through the fun and why the launch.

Yes, absolutely.

And again.

You have me here today.

Our product development process and direction is very holistic, so we make sure that we offer traders the tools they need to go take advantage of volatile opportunities.

You know, to your point, we've seen some downside pressure in SpaceX.

I imagine we'll continue to see extreme volatility both to the up and downsides.

So we have LOFF liftoff, which is our 2X bull fund.

Now we have LOFD, our 2X bear fund.

And so really it's up to traders to see.

How they want to position themselves into a given day, bullish or bearish, we like to offer optionality.

So Ryan, let's talk on the flip side.

LOFF has been available since June.

So is this a daily 2x bullish fund?

So expand on the leverage funds that you guys currently offer.

Yes, so we're the largest single stock ETF provider in the world.

So we've been launched, we've had single stock ETFs since back in 2023 once the SEC allowed for them.

And we've been the biggest provider since then.

One of our largest funds and the largest in the world for a long time was TSLL, a 2X Tesla fund, and so, we've been around the Elon trade for quite some time now.

So naturally when SpaceX came public, we felt we needed to be out there in the market and offer traders a solution there as well.

All right, so a common denominator right now is obviously Elon Musk.

So why launch a fund that's tracking his company specifically?

Look, it's such a headline-driven market today, and Elon is the absolute king of that, you know, whether it's a tweet, whether it's a comment on earnings.

He is always a driver of volatility, and we like to say that volatility is an opportunity for tactical traders at direction.

And so if Elon is going to be driving markets, we want to offer leverage and inverse exposure on his companies.

All right, so the bearishment also comes after the first lockup expiration.

So take us through all the kinds of market activities SpaceX is inspiring at the moment.

Yes, it's certainly been a fun week here.

I mean, you had their first publicly reported earnings as a public company this past week.

The lockup come out as well in the same week.

So plenty of action and plenty of activities for traders to kind of key in on.

This is just the first of many lockups unwinding and so you're going to see these happen again and again throughout the rest of the summer and into the fall.

So it's something for traders to keep an eye on.

Obviously the market digested everything rather positively yesterday, but the day prior, especially off earnings, we saw a bit of a sell the news.

So really just have to remain nimble and again why we're offering both sides of the trade here.

Awesome.

Well Ryan, thanks so much for joining us.

Appreciate your time.

Thank you for having me today.

No problem.