Cboe Global Markets is preparing to launch options on SK Hynix’s (USOTC:HXSCL) U.S.-listed shares two business days after the stock begins trading on the Nasdaq, according to a source familiar with the plans who spoke to Reuters on Friday.
The South Korean semiconductor manufacturer, which raised $26.5 billion through its share offering, is scheduled to debut on Wall Street later on Friday. Market analysts view the listing as an important gauge of investor confidence in the artificial intelligence sector following recent weakness across semiconductor stocks.
According to the source, who requested anonymity because the information is confidential, options linked to the Nasdaq-listed shares will be introduced under existing regulatory requirements and the framework set out in the Options Listing Procedures Plan.
SK Hynix, which has a market valuation of approximately $1.03 trillion based on its shares listed in South Korea, did not immediately respond to Reuters’ request for comment.
The availability of options gives investors additional tools to hedge positions or speculate on future price movements, while also helping to improve liquidity and price discovery in newly listed stocks.
Investor enthusiasm for AI-related companies has fuelled significant capital flows into businesses supplying advanced chips and computing infrastructure, with SK Hynix among the major beneficiaries of that trend.
At the same time, rising concerns over elevated valuations have contributed to increased volatility across the semiconductor sector in recent weeks.
“In a shallow correction, SK Hynix holds up better because its supply is the most locked and the most strategic. In a deep AI winter, Micron’s diversification and U.S. positioning make it the relative safe haven,” said Daniel Newman, CEO of tech research firm Futurum Group.
Strong interest from retail investors could also support an active options market for the stock, as traders seek leveraged exposure to AI-focused companies. While options can magnify potential returns, they can also increase downside risks.
Last month, options linked to Elon Musk-led SpaceX generated record trading volumes, highlighting the strong appetite among investors for derivatives tied to high-profile technology companies.