Coinbase Stocks Now Available for Options Trading on Nasdaq from April 20
Options were launched on Nasdaq less than a week ago after Coinbase was directly listed and went as a public company.
Option is a contract which conveys the holder the right to buy or sell an underlying asset or instrument at a strike price prior to or on a specified date, depending on the form of the option
There are two types of financial instruments available on Nasdaq, which provide an opportunity to earn monetary value, depending on the state of the market. A put option is a contract giving the owner the right, to sell–or sell short–a specified amount of an underlying security at the strike price within a specified time frame. Put options allow one to gain monetary value on the fall in the asset price, and call options – on its growth.
Another advantage of working with stocks through the use of options is the potential to raise its rate using leverage, keeping in mind this method is considered a high risk.
In addition, options based on various assets are introduced in the market, including financial instruments of cryptocurrencies are available to investors.
The beginning
Coinbase was introduced to NASDAQ on April 14. Immediately after the opening, the strike price of the securities rose to $381, with an initial reference price of $250.
Within a few hours, the value of shares grew by 12.5%, to $ 429.5, shortly after quotations began to decline and reached a minimum of $ 315. The closing price on the first day was $ 328.28. As of April 20, the stock is trading at $ 332 in the US premarket.
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