Virgin Galactic was granted FAA approval to take customers to space
Space exploration name Virgin Galactic Holding Inc (NYSE:SPCE) is soaring today, last seen up 16.3% to trade at $46.84, after getting the green light to fly paying customers into space. The U.S. Federal Aviation Administration (FAA) granted the approval -- the first of its kind -- following Virgin Galactic's successful test flight in May.
Options players are reacting to the news, too. So far, 112,000 calls and 29,000 puts have exchanged hands, which is five times the intraday average. Most popular is the weekly 6/25 50-strike call, followed by the August 50 call, with new positions being opened at both.
Some of these bulls might be cheering soon, as a short squeeze could propel the security even higher. In the last two reporting periods, short interest rose 36.8%, and the 45.92 million shares sold short account for a hefty 27.8% of the stock's available float.
On the charts, SPCE is pacing for its sixth consecutive weekly win. The security has received plenty of underlying support from its 10-day moving average since toppling the level in late-May. Plus, today's pop has SPCE trading back above the $42 mark for the first time since February, boasting a year-to-date lead of 94%.