How soon do options get traded after IPO?

[greenlantern213]

I'd love to buy some puts on facebook

 

[qqqoptions]

In a few weeks, it will certainly be less than a month. I would be buying Calls.

 

[rmorse]

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

 

[phil413]

Quote from rmorse:

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

Thank you Robert was wondering myself

Phil

 

[stock777]

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.

 

[trefoil]

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.

 

[stock777]

yeah, they support price for at least a year.

they make sure theres a 1 cent bid at ALL TIMES, even after hours.

 

[FrankSlaughtery]

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.

 

[gaj]

Quote from trefoil:

Um, you know, price gets supported by the issuing ib's for a year,

GRPN, ZNGA and a bunch of others say hi.

 

[qqqoptions]

Quote from FrankSlaughtery:

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.

Maybe try some Long Butterflies.