How long after a new NYSE listing is there an options chain for the underlying?

D

d0rian

Aurora Cannabis (ACB) has applied to list on the NYSE and expects to start trading before the end of the month. (It currently trades on the Canadian exchange.)

How can I tell if there will be an option chain available for the US listing? And when a company DOES have an options chain, will it usually start trading on the same day that the new listing goes live, or not until weeks/months later?
 
My (vague) recollection is that issuance comes with pressure -- much as do smaller (more frequent) strike intervals. So, your own inquiry could make a difference (although, if you had $1B in AUM, that would probably help.....:rolleyes:)
 
tommcginnis said:
My (vague) recollection is that issuance comes with pressure -- much as do smaller (more frequent) strike intervals. So, your own inquiry could make a difference (although, if you had $1B in AUM, that would probably help.....:rolleyes:)
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There needs to be sufficient volume in the underlying before options are considered. With some new issues, it takes some time to establish that the underlying volume would be enough to support a viable option market.
 
Thanks for the replies. My understanding, by the way, is that the company itself actually has no say in whether there is an options-chain for its symbol (correct me if I'm wrong...) IOW, once they decide to list on a US exchange, it's then up to options exchanges if they want to create an options market...is that right?

Tom's comment above suggests that you can actually petition (read: simply ask) an exchange for an options market. Who are the major options markets to whom I should direct such an inquiry (even acknowledging that retail investors may not get very far...)?
 
d0rian said:
My understanding, by the way, is that the company itself actually has no say in whether there is an options-chain for its symbol (correct me if I'm wrong...)
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That would be incorrect. The company has control over listing their security not derivatives of their security. The OCC is 100% in charge of what is listed as they are the counter-party for all cleared option trades.
 
Robert Morse said:
That would be incorrect. The company has control over listing their security not derivatives of their security. The OCC is 100% in charge of what is listed as they are the counter-party for all cleared option trades.
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please reread your reply. it sounds like you and d0rian agree.
 
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