Publicly traded since early August, aerospace and defense stock Firefly Aerospace Inc (NASDAQ:FLY) is plummeting to new lows -- down 20.9% at $29.24 at last glance -- after one of the company's rocket boosters exploded during preflight testing in Briggs, Texas. The seventh Alpha flight was intended to be a dedicated commercial launch occurring later this year, though it's likely delayed now.
Firefly Aerospace stock was already sliding prior to today's bear gap, last seen on track for its fifth loss in the last six sessions. Since the start of the month, the equity is down 36.8%, far removed from its initial public offering (IPO) price of $45 per share, as well as its Aug. 5, all-time high of $73.80.
Today's volatility has FLY on the short sell restricted (SSR) list. The stock has already seen 10 times its average daily options volume in the options pits today, with 4,989 calls and 4,065 puts exchanged so far. The February 40 call is the most popular, with new positions being sold to open there.
These options are reasonably priced at the moment, too. FLY's Schaeffer's Volatility Index (SVI) of 71% ranks in the low 14th percentile of its annual range, meaning options traders are pricing in low volatility expectations.
