Why You Can't Trade Options on Every Stock (Yet)

There are four primary criteria that determine whether you can trade options on a specific stock

Nov 22, 2015 at 12:00 PM
    facebook X logo linkedin

    Once you've discovered the nearly-endless utility and flexibility of calls and puts, it may come as a shock when you realize that you can't trade options on every single stock that crosses your radar. The exchanges have established some minimum standards that must be met before options are listed on a specific equity. Here, per the Options Industry Council (OIC), are the four criteria:

    1. The stock must be listed on an established national exchange, such as the NYSE, NASDAQ, or AMEX. In other words, over-the-counter issues need not apply.
    2. A minimum closing stock price of at least $3.00 per share must be maintained for the majority of at least five trading days. This requirement takes a lot of super-speculative penny stocks out of the running.
    3. The stock's float (the number of shares available for public trading) must be equal to or greater than 7 million shares. Any stock held by directors or major stakeholders isn't included when calculating float.
    4. The equity must have at least 2,000 shareholders.
    In order to make sure that #2 above is met, options generally aren't listed until at least five days after a stock's IPO. This is true of even the most popular stock launches. Back in May 2012, there was a lag of seven trading days before calls and puts were listed on Facebook Inc (NASDAQ:FB), while Twitter Inc (NYSE:TWTR) speculators also had to wait seven long sessions in November 2013 before they could trade options.

    Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

    This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

    On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

    Start targeting gains like the ones our subscribers have seen recently, including:

    213.3% GAIN on AutoNation calls
    100.0% GAIN on Monster Beverage calls
    100.4% GAIN on Walgreens Boots Alliance puts
    100.4% GAIN on ON Semiconductor calls
    257.7% GAIN on Dell calls

    101.0% GAIN on Apollo Global Management calls
    103.6% GAIN on JP Morgan  Chase calls
    105.3% GAIN on DraftKings calls
    101.3% GAIN on Airbnb calls
    203.0% GAIN on Shopify calls
    102.0% GAIN on Cboe Global Markets calls
    100.9% GAIN on Boeing calls
    102.1% GAIN on Microsoft puts
    102.3% GAIN on First Solar calls
    101.5% GAIN on PulteGroup calls
    101.0% GAIN on Apple calls
    209.4% GAIN on NXP Semiconductors calls
    100.8% GAIN on Uber Technologies calls
    100.4% GAIN on Academy Sports and Outdoors puts
    102.2% GAIN on Trade Desk calls
    100.8% GAIN on DoorDash calls
    100.0% GAIN on Camping World Holdings puts
    100.0% GAIN on Cboe Global Markets calls
    100.2% GAIN on C3.ai calls
    238.5% GAIN on Oracle calls



    Rainmaker Ads CGI