Chicago based sandwich maker Potbelly (PBPB) went public last Friday at $14 and is now trading $31 confirming investors hunger for restaurant chains. (Noodles (NDLS) has more than doubled since its $18 IPO last June.)
Potbelly started out as an antique store on Lincoln Avenue in Chicago that sold sandwiches to help make ends meet. I’ve been following Potbelly’s evolution since my first toasty warm sandwich and hand dipped shake. We would take orders in the trading pit here at CBOE and someone’s clerk would make the food run for the potbelly stove roasted sandwiches. Potbelly for lunch was the one thing traders could all agree on. Today Potbelly has over 275 stores with serious plans for growth.
If you have been standing on the sidelines with an appetite for shares but find them too expensive then a call option may provide you a means of getting in the game with less risk. The purchase of a call option or shares of stock has unlimited profit potential. The most you can lose with a call is the premium paid. The purchase of stock may incur substantial losses on the downside.
The first trading day for PBPB options will be Monday October 14th. In case you have been wondering what determines whether a stock can have listed options, here is the qualifying criteria:
- A minimum of 7,000,000 shares which are owned by persons other than those required to report their stock holdings under Section 16(a) of the Securities Exchange Act of 1934
- A minimum of 2,000 stockholders
- Total trading volume of at least 2,400,000 shares reached at any time in the last 12 months
- The market price per share has been at least $3 for the previous 5 consecutive business days preceding the date on which the CBOE issues a certificate to the Options Clearing Corporation (OCC) for trading.
So come Monday, roll your sleeves up and grab a PBPB menu. There will be Calls and Puts with various strikes and expirations to choose from. What are you waiting for? CBOE is here to take your order.