Arm Holdings stock falls another 5% as options traders make bearish start

ARM Holdings (LON:ARM) marked a near 5% decline by the end of dealing in America on Monday, the first day of options trading for the UK-headquartered semi-conductor firm.

A total of 74,000 options over Arm stock traded on Monday, according to market number crunchers, with the firm listed amongst the ‘top 50’ most active stocks in the options market.

Most of the options, more than 80%, were October ‘puts’ meaning traders were positioning for the stock to trade lower in the coming weeks.

It comes after Arm performed better than expected in its IPO, which priced at the upper end of the guided range and subsequently climbed 25% on its New York debut.

At $57.50 ahead of Tuesday’s open, the stock remains materially above last Thursday’s IPO price of $51.00.

The IPO saw Arm’s parent SoftBank sell around 9.4% of its stake in the Cambridge-headquartered group at $51 a share, with the float valuing the business at more than $54 billion.