By Manya Saini and Pritam Biswas
July 10 (Reuters) - Derivatives exchange Cboe Global Markets expects to list options on SK Hynix's U.S.-listed shares two business days after the stock's trading debut, a source familiar with the matter told Reuters on Friday.
The South Korean chipmaker, which raised $26.5 billion in share sale, is set to make its Wall Street entry later in the day. Analysts say it will be a crucial test of investor faith in the AI trade after a recent pullback in semiconductor stocks.
Options tied to the Nasdaq listing will trade according to existing regulatory rules and the Options Listing Procedures Plan framework, the source said on condition of anonymity as the information is confidential.
SK Hynix, which is valued at about $1.03 trillion based on its South Korea-listed shares, did not immediately respond to a Reuters request for comment.
Options trading allows market participants to hedge risk or bet on future share-price moves, typically increasing liquidity and price discovery in a stock.
Investors have poured money into companies tied to the AI boom, betting that years of heavy spending on chips and computing infrastructure will drive steady demand for companies such as SK Hynix.
More recently, however, concerns about lofty valuations have triggered bouts of volatility across the sector.
"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.
Heavy retail participation could also make the stock's options market active, as traders seek leveraged exposure to AI-related names, a dynamic that can amplify gains as well as losses.
Elon Musk-led SpaceX's options launched last month have attracted record trading volumes.
(Reporting by Manya Saini and Pritam Biswas in Bengaluru; Editing by Arun Koyyur)
