Alibaba Options to List on CBOE Exchanges
Chinese e-commerce heavyweight Alibaba Group Holding Ltd's options will debut on CBOE Holdings Inc's exchanges on Monday with strike prices ranging from $75 to $100 in $5 increments, a CBOE spokeswoman said on Friday.
US options exchanges are expected to list contracts on Alibaba on September 29, with their debut opening the gates to a flood of speculators and hedgers to begin opening positions premised on where they think the stock will trade at various future dates.
Susquehanna Securities will be the only designated primary market maker for Alibaba's options at CBOE, the spokeswoman said.
Alibaba options will initially list on the Chicago Board Options Exchange and the C2 Options Exchange with expirations in October, November, January and April, she said.
CBOE's Chicago Board Options Exchange and the C2 Options Exchange together so far account for about 29 per cent of trading in US stock and exchange options in 2014, per Options Clearing Corporation data.
The options will be subject to position limits of 250,000 contracts and will also have long-term option contracts, termed Long-term Equity AnticiPation Securities (LEAPS), available to trade, the spokeswoman added.
Alibaba shares rose about 38 per cent in their trading debut on the New York Stock Exchange on September 19.
Copyright @ Thomson Reuters 2014
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