Nasdaq to list options for Coinbase stock

Exchanges • April 20, 2021, 4:25AM EDT

Exchange giant Nasdaq is set to list options contracts for Coinbase stock.

The listing will take place on Tuesday, a Nasdaq representative told Reuters on Monday. Stock options give traders the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date.

There are two types of options: puts, which is a bet that a stock will fall, and calls, which is a bet that a stock will rise.

Options trading has exploded in recent months, reportedly thanks to the coronavirus pandemic and commission-free trading offered by popular mobile investing apps like Robinhood.

While options can provide substantial profit opportunities as they offer leverage, they can be risky if the predicted price change does not occur before their expiry date. Risk, however, is limited to the premium paid for the option.

Coinbase went public on Nasdaq last week. Its share price has been volatile in the range of $310 and $430. Coinbase closed at $333 on Monday.

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.