Despite a global pandemic, supply chain issues, and other short-term fears, technology continues to create new industries and services that consumers are willing to spend money on.
One of the top new industries is space tourism. This year has seen the launch of the first few space flights with civilian passengers. The market is starting as an expensive niche, but will likely expand in the years ahead, and serve as a springboard for other space travel.
One of the industry leaders, Virgin Galactic (SPCE), has seen its shares launch up and come back down repeatedly over the past year. On Wednesday, the FAA completed an investigation into some anomalies on the company’s first manned flight. The news was enough to start sending shares higher once again.
Even with the bump higher, shares are still down more than 50 percent from their all-time highs. While the company is just starting operations and isn’t profitable, Virgin Galactic stands to become an industry leader.
Action to take: The launch of commercial operations and the FAA clearance make shares look attractive for long-term investors here. Just be prepared for some volatility.
Traders may like the January $30 calls. Last going for about $2.50, the option has the possibility for a big move higher in the coming months if shares are back into a strong uptrend once again.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.