<p>Exchange giant Nasdaq is set to list options contracts for <a href="https://www.theblockcrypto.com/linked/59919/coinbase-wallet-to-let-users-lend-out-crypto-and-track-interest-earned-across-multiple-defi-platforms">Coinbase</a> stock.</p> <p>The listing will take place on Tuesday, a Nasdaq representative <a href="https://www.reuters.com/business/options-coinbase-global-start-trading-april-20-nasdaq-says-2021-04-19/">told</a> 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.</p> <p>There are <a href="https://www.investopedia.com/terms/s/stockoption.asp#:~:text=A%20stock%20option%20gives%20an,that%20a%20stock%20will%20rise.">two types</a> of options: puts, which is a bet that a stock will fall, and calls, which is a bet that a stock will rise.</p> <p>Options trading has <a href="https://www.thestreet.com/investing/how-robinhood-and-reddit-have-changed-options-trading">exploded</a> in recent months, reportedly thanks to the coronavirus pandemic and commission-free trading offered by popular mobile investing apps like Robinhood.</p> <p>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 <a href="https://www.nasdaq.com/articles/benefits-risks-options-trading-2019-06-10">limited to</a> the premium paid for the option.</p> <p><a href="https://www.theblockcrypto.com/linked/60173/coinbase-says-its-commerce-platform-has-seen-200-million-in-transactions-processed-since-launch">Coinbase</a> went public on Nasdaq last week. Its share price has been volatile in the <a href="https://finance.yahoo.com/quote/COIN?p=COIN&amp;.tsrc=fin-srch">range of</a> $310 and $430. <a href="https://www.theblockcrypto.com/linked/621/coinbase-provides-clarity-around-proprietary-trading-accusation">Coinbase</a> <a href="https://www.nasdaq.com/market-activity/stocks/coin">closed at</a> $333 on Monday.</p>