The Chicago Board Options Exchange, the largest U.S. options market, said it will list options on The Blackstone Group starting on Monday.
Private equity giant Blackstone Group made its market debut last Friday. According to Reuters data, Blackstone's stock is off more than 15.7% on the week, including Friday. In afternoon trading, its shares slipped below the company's $31 initial offer price.
In a statement, CBOE said Blackstone options will trade on the March expiration cycle, with introductory expirations in July, August, September and December. Initial strike prices have been set at 25, 30 and 35, with position limits of 250,000 contracts. Group One Trading, LP has been named the Designated Primary Market Maker in the options.
Other U.S. options exchanges are expected to follow suit, since the majority of equity options are multiply listed.