Investors are set to gain a new way to trade SpaceX as options on the aerospace and satellite company are expected to begin trading as early as Tuesday, following the stock’s blockbuster Nasdaq debut.According to Reuters, Cboe Global Markets expects to list options on SpaceX shares on Tuesday, opening the door for traders and investors to hedge positions, speculate on price swings, or gain leveraged exposure to the stock.The move comes after SpaceX’s first day of trading on Friday, when the stock surged more than 25% from its IPO price of $135, briefly lifting the company’s valuation above $2 trillion and making it one of the largest publicly traded companies in the United States.Market participants expect intense early activity in the options market, driven by both retail traders and institutional investors. Shareholders may use put options to protect against downside risk, while speculative traders are likely to target short-term volatility in the stock.Options contracts give investors the right, but not the obligation, to buy or sell shares at a fixed price within a specified time period. They are commonly introduced within days of a company’s stock market debut and often become a key venue for expressing bullish or bearish views on newly listed stocks.Analysts expect SpaceX options to be expensive initially because of anticipated volatility in the underlying shares. Traders are drawing comparisons with Tesla, another Elon Musk-led company known for large price swings. Tesla’s five-year beta, a measure of volatility relative to the broader market, stands at 1.81 according to LSEG data, indicating substantially higher volatility than the market average.Investors are also preparing for several potential catalysts that could drive sharp moves in SpaceX shares in the coming months, including the company’s first quarterly earnings report as a public company and possible inclusion in major equity indices. Nasdaq has already adjusted certain rules to facilitate SpaceX’s entry into the Nasdaq 100, while MSCI said it would apply early inclusion rules for large IPOs. However, S&P Global has said the company will not receive fast-track inclusion into the S&P 500.The expected launch of options trading is also likely to attract bearish traders who want to wager against the stock without directly short-selling shares. Using options can limit potential losses to the premium paid, unlike short selling, where losses can theoretically be unlimited if the stock rises sharply.Still, the combination of a relatively limited public float, strong retail interest, and the high-profile nature of the listing could make trading in SpaceX options particularly volatile in the early sessions, according to market participants cited by Reuters.