6 ms·
Can you buy puts on a pre-IPO stock? I didn't think you could.
by banned_man 18y ago
Can you buy puts on a pre-IPO stock? I didn't think you could.
- lisper 18y agoNope. Options don't become available for several weeks after an IPO. There needs to be some historical price data to feed the black-scholes formula in order to price the options.
- banned_man 18y agoA real trader would start trading anyway. Volatility? Just a number computed from a mound of stale data. Kurtosis? Sounds like a disease. Too much thinking for a game as simple as "buy" and "sell"!