Despite Challenges, AST SpaceMobile Stock Could Make a Compelling Options Trade for Contrarians Here

It’s not difficult to cast doubt on AST SpaceMobile (ASTS). While you can wax poetic about the projected multi-trillion-dollar total addressable market of the space economy, AST has suffered significant challenges on the way. Further, the initial public offering of SpaceX (SPCX) imposes obvious competition. Nevertheless, for those seeking a high-risk, high-reward opportunity, ASTS stock could make an attractive case over the coming weeks.

Before we begin, prospective traders must recognize the bullish idea as highly speculative. For one thing, the Barchart Technical Opinion indicator warns that ASTS stock suffers from a 72% Strong Sell rating, noting that short-term outlook is fraught with downside risk. And while we’re on the topic of the technicals, the ticker is down roughly 23% on a year-to-date basis and has tumbled by more than 46% in the past six months.