Don’t Wait for the SpaceX IPO: The Mid-Cap Stock Smart Traders Are Flocking to Right Now

You’ve probably heard the news. It’s everywhere. SpaceX is going public. June 12, 2026. Stock ticker: $SPCX. Valuation? A jaw‑dropping $1.77 trillion. We’re talking about the biggest IPO in human history. And honestly? It feels like everyone and their dog is trying to figure out how to get a piece of it.

I get the FOMO. I really do.

But here’s the thing that most people miss: You don’t actually have to wait for the IPO itself to play this trade. In fact, some of the savviest traders I’ve been watching aren’t even touching SPCX. They’re piling into something else. Something smaller. Something you can buy right now.

I’m talking about a mid‑cap stock that’s quietly become the hottest proxy play for the SpaceX frenzy.

Let me show you exactly what’s happening, why traders are flooding into this name, and whether it might be the smarter way to ride the SpaceX wave.

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First, a Quick Reality Check on the SpaceX IPO

Before we get to the stock everyone’s chasing, we need to understand what we’re actually dealing with on the SpaceX front. Because it’s… well, it’s weird.

SpaceX is aiming to raise a staggering $75 billion by selling 555.6 million new shares at $135 each. That valuation – $1.77 trillion – would instantly make it more valuable than Tesla (currently around $1.6 trillion) and place it among the top 10 largest U.S. companies.

Impressive, right? Sure. But here’s the kicker:

• Only about 5% of the company’s total shares will actually be available for public trading after the IPO.
• The rest stays firmly in the hands of Elon Musk and early insiders. Musk himself will retain over 84% of the voting power.
• The company is burning cash like crazy. In 2025, SpaceX posted a net loss of nearly $5 billion while sinking money into Starship development and AI data centers.
• And some analysts – including Morningstar – think the valuation is wildly optimistic. They peg fair value closer to $780 billion, less than half the IPO target.

So yeah. The hype is enormous. But the actual opportunity for regular investors? Pretty limited. You’ll be fighting for scraps of a tiny public float, buying into a company with a history of heavy losses and a valuation that even its biggest fans admit is stretched.

That’s why smart money is looking elsewhere.

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The Mid‑Cap Stock That’s Stealing the Show

So what are the pros doing instead?

They’re buying EchoStar (NASDAQ: SATS).

If you haven’t heard of them, here’s the quick version: EchoStar is a $35 billion Colorado‑based networking and satellite communications company. They provide wireless spectrum and infrastructure.

But here’s the part that makes this interesting: EchoStar owns an estimated 3% of SpaceX stock.

That’s not a typo.

Back in September, EchoStar struck a deal to provide wireless spectrum to SpaceX’s Starlink division. As part of that agreement, they took an equity stake in SpaceX itself. So when SpaceX goes public, EchoStar’s balance sheet gets a massive one‑time boost.

And traders have noticed. In a big way.

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Let’s Look at the Numbers

On Wednesday alone, more than 60,000 EchoStar options contracts traded – roughly three times the daily average over the past month. Total premium traded? Just shy of $50 million.

And get this: About five times as many call options traded as puts. But here’s where it gets interesting – nearly three times as many calls were sold compared to bought*.

What does that mean?

It suggests that traders aren’t just blindly betting on EchoStar going up. They’re hedging. They’re putting on spreads. They’re treating this as a calculated, structured play – not a pure gamble. That’s exactly what you’d expect to see from experienced market participants.

The stock itself has already run up 650% over the past year. But it’s also pulled back about 11% in the last month. That’s the kind of volatility that scares off amateurs… and attracts professionals.

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Why EchoStar? Breaking Down the Thesis

Alright, so traders are piling in. But why? What’s the actual logic here?

Let me break it down for you.

1. Direct Equity Stake in SpaceX

This is the headline. EchoStar owns 3% of SpaceX. When SpaceX lists at a $1.77 trillion valuation, that stake will be worth roughly $53 billion. For context, EchoStar’s entire market cap before this trade was $35 billion.

We’re talking about a potential windfall that could dramatically reshape the company’s financial picture.

2. Spectrum Assets Are Gold

Beyond the SpaceX stake, EchoStar controls a portfolio of valuable wireless spectrum licenses – the radio frequencies that make satellite communications possible.

In an era where everyone from Apple to Amazon is racing to build satellite networks, spectrum is becoming increasingly scarce. And increasingly valuable.

3. Starlink Partnership

EchoStar isn’t just a passive investor. They’re an active partner. The same deal that gave them equity also tied their technology directly to Starlink’s growth. As Starlink expands, EchoStar benefits operationally – not just financially.

That’s a much more durable moat than a one‑time IPO pop.

4. Analyst Support

This isn’t just retail hype. New Street Research recently initiated coverage on a bunch of space stocks and gave EchoStar a Buy rating. They’re not alone either. Several firms see EchoStar as one of the most direct – and underappreciated – ways to play the SpaceX story.

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But Wait – What About the Other SpaceX‑Adjacent Stocks?

Great question.

EchoStar isn’t the only game in town. If you’re looking for other ways to get exposure before the IPO, here are a few names that have been popping up on traders’ radars:

Now, here’s the catch: Many of these stocks have already run hard. Rocket Lab is up over 400% in the past year. AST SpaceMobile trades at an eye‑watering 452x sales.

That’s the challenge with playing the hype before the fact. The easy money may have already been made.

EchoStar, by contrast, has a clear, near‑term catalyst (the IPO itself) that hasn’t fully played out yet. That’s what makes it so compelling to options traders right now.

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The Risks You Absolutely Need to Know

I’d be doing you a disservice if I didn’t talk about the downside. Because there’s plenty of it.

1. Valuation is already stretched.
EchoStar is up 650% in a year. Even with the recent pullback, that’s an enormous run. Chasing momentum stocks can work… until it doesn’t.

2. The “sell the news” effect.
One of the oldest patterns in trading: buy the rumor, sell the news. The SpaceX IPO has been anticipated for months. By the time the stock actually starts trading, the “EchoStar owns SpaceX stock” story might already be fully priced in.

3. The options market is signaling caution.
Remember those call selling stats earlier? That suggests some traders are using spreads to hedge their bets – not going all‑in with unprotected upside calls. That’s a yellow flag, not a red one, but worth noting.

4. Macro risks.
SpaceX’s massive $75 billion IPO – combined with upcoming debuts from OpenAI and Anthropic – could suck liquidity out of the broader market. Some analysts worry this could trigger a pullback in tech stocks generally. If that happens, EchoStar might not be immune.

5. Morningstar’s valuation warning on SpaceX.
If Morningstar is right and SpaceX is significantly overvalued, the pop that EchoStar is counting on might be smaller – or even nonexistent.

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How to Think About This Trade

So what do you actually do with all this information?

Honestly? That depends on your risk tolerance and your timeframe.

Here’s how I’m thinking about it:

• Short‑term traders are playing the options market – call spreads, iron condors, the whole toolkit. They’re betting on volatility around the IPO itself.
• Swing traders might look to buy on weakness (that 11% pullback could be an entry point) and sell into the hype as June 12 approaches.
• Long‑term investors need to ask a different question: Do I actually believe in EchoStar’s core business, beyond the SpaceX stake? Because once the IPO dust settles, this will still be a satellite communications company competing in a crowded field.

Me? I’m watching the options flow closely. When you see institutional traders putting on structured positions with $50 million in premium, it’s worth paying attention. But I’m also keeping a tight stop loss and sizing my position accordingly.

This is a trade, not an investment.

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Don’t Just Chase the Hype

Look, I get the excitement. A SpaceX IPO only happens once. And the temptation to just buy SPCX the second it starts trading is real.

But the smartest money isn’t waiting in line for scraps of a 5% float.

They’re finding secondary plays like EchoStar – companies that benefit from the IPO without the insane valuation and limited liquidity of the primary offering.

That’s not to say EchoStar is a sure thing. Far from it. But for traders who want exposure to the SpaceX frenzy before the big day, with a built‑in hedge and a clear catalyst?

It might just be the most interesting setup on the board right now.