Investing.com -- Options on SpaceX began trading Tuesday, giving investors a new way to trade the rocket company's recently listed shares.

The options contracts allow investors to buy or sell the asset at a set price within a specific time period. Investors use options to protect against risk or to bet on future price changes.

The commencement coincided with the company's announcement that it had excercised its option to acquire AI coding startup Cursor in $60 billion all-stock deal.

The company's shares are gaining roughly 17% higher shortly after 10AM on Tuesday, it's second full trading day.