How soon do options get traded after IPO?

Discussion in 'Options' started by greenlantern213, May 17, 2012.

  1. I'd love to buy some puts on facebook
     
  2. In a few weeks, it will certainly be less than a month. I would be buying Calls.

    :)
     
  3. rmorse

    rmorse ET Sponsor

    I believe the options will begin trading on May 29th.
     
  4. phil413

    phil413

    Thank you Robert was wondering myself

    Phil
     
  5. welcome to et. hope your stay will be a pleasant one.

    The answer is, as soon as the stock bottoms, so all the put buyers are sure to burn money.
     
  6. Um, you know, price gets supported by the issuing ib's for a year, if it's still the way it was way back when I was interested in new issues - I'm sure someone will be along to say for how long. I wouldn't try buying puts or shorting this thing until after that year is up, unless you like the experience of being eaten alive by GS, among others.
     
  7. yeah, they support price for at least a year.

    they make sure theres a 1 cent bid at ALL TIMES, even after hours.
     
  8. remember that the iv will be HUGE - be careful buying options. i'd suggest waiting a few days for the stock to trade and the mm's to get a feel for the vol.
     
  9. gaj

    gaj

    GRPN, ZNGA and a bunch of others say hi.
     
  10. Maybe try some Long Butterflies.

    :)
     
    #10     May 18, 2012