Options on Coinbase Global Inc (COIN.O) are scheduled to trade on the Nasdaq exchanges beginning on April 20, 2021.
The initiation of equity options on the newly public Coinbase stock will provide another way for investors to wager on the fortunes of the San Francisco-based cryptocurrency exchange.
Equity options are another way for investors to interact with the market. They offer the trader the right, but not the hard-set obligation to purchase or sell a stock at a specific amount, also referred to as the “strike price,” before they expire.
At the time of press, the stock is trading at $331 in pre-market. Despite the fluctuations in price, this is higher than the initial pre-listing $250 reference point set by Nasdaq a week ago.
On the first day of trading, Coinbase CEO Brian Armstrong sold almost $300 million in shares. According to data from the U.S Securities and Exchange Commission (SEC), Armstrong sold 749,999 shares over three sessions while the share prices ranged from $381 to $410.40. This equates to roughly $1.5% of his stake in the company.
Also of note is the ARK investment group’s purchase of $68 million in COIN shares on top of its initial $246 million buy.
Coinciding with the timeline of Coinbase going public, Bitcoin reached a new all-time high of $64,854.
The attention from the mainstream media and those in the investment space has seemingly attracted new investors and encouraged others in the crypto space to go public. With the new public listing, equity options, and the additional book orders on Coinbase Pro, the company continues to set milestones and take large strides within the crypto industry.