SpaceX will be included in the Nasdaq-100 Index on Tuesday. Against a backdrop of conflicting forces, analysts and investors anticipate high volatility in the stock price and recommend caution, as hedging activity around the stock is heating up. JJ Kinahan, Senior Vice President of the Chicago Board Options Exchange, stated that investors should prepare for a $20 price swing in the stock over the next week and a half. During its initial public offering, only about 4% of SpaceX shares will be available for sale, although the proportion allocated to retail investors is higher than average. According to Nasdaq-100 inclusion rules, this will translate into a relatively modest index weighting: JPMorgan estimates a 1.3% weighting, which would place it around 21st in the index, behind Nvidia, Walmart, Intel, and Tesla. Analysts note that this means the early impact of passive buying on the stock price may be limited. “There’s no doubt this is still very high volatility,” said Mike Hov, Chief Strategist at OpenInterest.PRO. “But the smaller the weighting of any component in the index, the fewer shares anyone trying to track the index will need to buy.” Jeff Jacobson, Head of Derivatives Strategy at 22V Research, made a similar comment in a report to clients on June 21: “The buying required for index inclusion may be far smaller than initially anticipated.”