Tag: market valuation

Introduction:Initial Public Offerings (IPOs) generate significant excitement in the financial markets. As an investor or options trader, understanding how strike prices reflect market expectations before and after an IPO is crucial for making informed decisions. In this article, we will explore how strike prices can provide insights into market sentiment and expectations during the pre- and post-IPO phases. Pre-IPO Market Expectations:an IPO, strike prices can reflect the market's expectations regarding the future valuation of the company In the pre-IPO phase, strike prices for options contracts are typically set based on...