Thirty-Six Engines, an IP License, and a Mix of Cash and AST Shares
Firefly's company release said the three-year agreement covers delivery of 36 rocket engines, a license to the engine intellectual property, and engineering support for AST SpaceMobile's new heavy-lift rocket. The mix is 27 Miranda engines and nine vacuum-variant Vira engines for AST's first three rockets, plus a manufacturing license so AST can build engines itself. AST will pay Firefly more than $1.3 billion in a combination of cash and shares of AST Class A common stock, with the stock portion subject to various lock-up periods. Firefly said it retains full ownership of its engine IP and will keep serving the broader government and commercial launch market.
The release put Miranda at more than 175 hot-fire tests totaling over 4,200 seconds, including a flight-like run at 110% of the 230,000 lbf-thrust rating that ran 20 seconds past a 206-second nominal flight duration. Both Miranda and Vira use technology scaled from Firefly's Reaver and Lightning engines. StockTitan and Investing.com both framed the package as engine hardware plus IP and support, not a one-off hardware sale.
Production Capex Now, Earnings Still on the Calendar
Firefly said the funds will accelerate hiring, long-lead materials, equipment, and infrastructure, including multiple new test bays at its Briggs, Texas, Rocket Ranch, so it can expand its own launch-vehicle production. CEO Jason Kim called the deal transformational for both companies; AST SpaceMobile founder Abel Avellan highlighted Firefly as one of a few U.S. firms with a proven liquid engine at that scale. The companies are both Texas-based and described the agreement as non-competitive by design.
The options calendar still has a dated catalyst inside it. Firefly said it will discuss the agreement on its third-quarter 2026 earnings call at 5:00 PM ET on Tuesday, November 10, 2026. That print sits inside the next weekly and monthly expirations after today's same-day contracts burn off, so any follow-through on cash burn, margin on the AST work, and the lock-up terms of the share consideration still has room to reprice the chain next week.
Twenty-Nine Percent Cash Through Friday's Same-Day Call Strikes
Against Thursday's $15.18 close, a move to about $19.63 is roughly 29% — well past the mid-teens percentage moves that short-dated ATM straddles often price on names in this volatility cohort. Delayed Yahoo Finance options for the November 6 weekly chain showed heavy call activity after the open: the $18.50 call traded 451 contracts against open interest of 3,879, the $17.50 call 433 contracts, and the $20 call 448 contracts, while several in-the-money puts that had been trading above $1 on Thursday printed near nickels as the stock ripped higher. Cboe delayed quotes are a reference rather than fills; spreads on a name that just moved nearly 30% can still be wide into the close.
Long November 6 calls struck near $17.50 to $18.50 have been paid by the stock leg at these prints; short same-day calls and short straddles that sold a smaller Friday move are the other side of that tape. Monthly and November 10 event premium is a separate question once today's expiration settles. Our implied volatility guide covers how event premium behaves after a catalyst, and the OCC options disclosure document explains the risks of standardized options.
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*By the OptionsPilot Editorial Team. Published November 6, 2026, 9:17 AM PT. This article is for education only and is not investment advice. Options involve risk and are not suitable for all investors.*
