Leveraged single-stock ETFs tied to Space Exploration Technologies Corp Stock (NASDAQ:SPCX) are heading into what could be their most volatile week since the company's blockbuster IPO, as Wall Street's growing bearish bets collide with the aerospace giant's first quarterly earnings report and a massive insider lockup expiration. • SpaceX stock is among today's top performers.
What's behind SPCX gains?
The Defiance Daily Target 2X Short SPCX ETF (BATS:SPCQ), Leverage Shares 2X Short SPCX Daily ETF (BATS:SSPC) and GraniteShares 2x Short SpaceX Daily ETF (BATS:SNK) have each declined about 9%-10% in Tuesday's session, ahead of SpaceX's earnings scheduled in a few hours, as SpaceX shares rebounded from July lows.
However, the pullback in inverse ETFs masks a sharp rise in bearish positioning against the underlying stock.
According to S3 Partners data cited by Bloomberg, short interest in SpaceX has surged to 219.3 million shares, representing about 34% of the public float and a bearish position worth roughly $24.6 billion.
