Anyone know what the process is for getting options listed on a new IPO? SHAK is a billion dollar company trading several million dollars of volume consistently at this point, but it's been 3 months now and there's still no options market. Is there something about the company or the stock that's disqualifying them?
SHAK options?
- Thread starter MoreLeverage
- Start date
Are there requirements for individual stock issues to underlie exchange-listed equity options?
Yes, option exchanges have certain eligibility requirements for stocks to become "optionable." Among the criteria are share price, number of shares outstanding, average daily volume, and "distribution" (i.e. shares outstanding owned by a minimum number of investors). The NYSE and NASDAQ also have their own listing requirements. Although CBOE has staff that is constantly reviewing stocks that are candidates for listing, it is possible that a stock has been overlooked. If you feel this might be the case, you can contact the CBOE and suggest it
http://www.cboe.com/learncenter/concepts/beyond/marketplace.aspx
"The Chicago Board Options Exchange says Shake Shack options should be listed in late July."
http://www.marketnewscall.com/shake...les-10-on-massive-volume-here-is-why/1248145/
BTW This stock's valuation is not just crazy... it is INSANE.
I would expect it to be back down before it is tradable except for shorting.
On the other hand:
http://www.thestreet.com/story/1315...gher-into-lock-up-expiration-this-summer.html
Yes, option exchanges have certain eligibility requirements for stocks to become "optionable." Among the criteria are share price, number of shares outstanding, average daily volume, and "distribution" (i.e. shares outstanding owned by a minimum number of investors). The NYSE and NASDAQ also have their own listing requirements. Although CBOE has staff that is constantly reviewing stocks that are candidates for listing, it is possible that a stock has been overlooked. If you feel this might be the case, you can contact the CBOE and suggest it
http://www.cboe.com/learncenter/concepts/beyond/marketplace.aspx
"The Chicago Board Options Exchange says Shake Shack options should be listed in late July."
http://www.marketnewscall.com/shake...les-10-on-massive-volume-here-is-why/1248145/
BTW This stock's valuation is not just crazy... it is INSANE.
I would expect it to be back down before it is tradable except for shorting.
On the other hand:
http://www.thestreet.com/story/1315...gher-into-lock-up-expiration-this-summer.html
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Thank you! Looks like it's a float size issue in this case, and they should have options later this summer.
