Can you trade IPOs using options right after a companies IPO has started trading on the stock market?

I want to know if when a company has an IPO, if you can start using options to trade that companies stock right after the IPO has started trading on the stock market? Please give me a simple, easy to understand answer to earn Best Answer.

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This entry was posted on Sunday, March 14th, 2010 at 12:18 am and is filed under Options Answers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

4 Responses to “Can you trade IPOs using options right after a companies IPO has started trading on the stock market?”

  1. Wooglet Voot Says:

    Normally the stock options covenants list any restrictions. There is no SEC regulations if that is what you need.

  2. ernesthinton Says:

    what are the put and call dates on your options?

  3. zman492 Says:

    No, you cannot.

    Options will not be listed on a stock until some time after the stock has been trading for some time. Options exchanges have minimum requirements for a stock before they will list options on the stock. Among the requirements is a minimum trading volume. Prior to the IPO there is no volume because the stock is not trading.

  4. easy-trader Says:

    easy-trader…

    [...]Can you trade IPOs using options right after a companies IPO has started trading on the stock market? | Options Trading Tutorial[...]…

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