Like all market participants, I have been following the SpaceX IPO and its aftermath closely. As a follower of “tails”, on both the left and right side, this IPO provides a great laboratory to test out some ideas and hypotheses on how the markets are pricing risk and reward in the extreme parts of the distribution.

Learn about exercise prices, also known as strike prices, and how they determine option value for call and put trades. Discover when options are "in" or "out" of the money.