Nasdaq has started trading options for Coinbase Global, as the COIN.O options have started trading on Nasdaq on April 20 (Tuesday).
It has been reported that the launch of equity options have offered a new way for investors to bet on the fortunes of Coinbase. Equity options represent the right, but not the obligation, to buy or sell a stock at a certain price, known as the strike price, on or before an expiration date.
However, the news follows Coinbase’s direct listing, which saw the firm’s stock fluctuate between a valuation of $429.54 and $310 on its first day of trading.
The report said that Reuters estimates that Brian Armstrong, the Chief Executive of Coinbase, sold around $292 million in shares on COIN’s first day of trading.
Nasdaq will launch options trading for Coinbase stock roughly one week after the exchange’s direct listing. https://t.co/PQ0X6BIQLE — Cointelegraph (@Cointelegraph) April 20, 2021
According to filings made with the US Securities and Exchange Commission (SEC), Armstrong sold 749,999 shares in three batches at prices ranging from $381 to $410.40 per share for total proceeds of $291.8 million, this works out at less than 2% of his total holdings.
It has also been analyzed that insiders dumped nearly $5 billion in COIN stock shortly after it was listed. Filings on the Coinbase Investor Relations website showed a total of 12,965,079 shares were sold by insiders, worth over $4.6 billion at COIN’s $344 share price at close on Friday. Also, Yahoo Finance reported that the stock has slumped 22.5% from a high of $429.54 on April 14 to a current after-hours trading price of $332.75 where it appears to have settled after Monday’s trading session.
Thus, the four assets will be paired with three fiat currencies (USD, EUR, GBP), BTC, and ETH, with limited trading functionality to be made available while market liquidity is assessed at launch.