Figma’s IPO started at around $90, with the initial share price set at $33. There was a huge demand, with 40 buyers for every share available. The share began trading at about $85 and reached a high of $93.50. The IPO raised about $1.2 billion, valuing Figma at $19.3 billion. This value is close to Adobe’s earlier $20 billion acquisition offer. Figma’s expected revenue this year is around $1 billion, with projections of $1.5 billion for next year. Figma is a cloud-based platform for collaborative UI/UX design, prototyping, and connecting developers. It offers tools like Figma Design for design work and FigJam for brainstorming. Dev Mode links design with code. At a share price of $85-$90, Figma’s market capitalization is about $50-55 billion, which is 30 times the predicted sales for next year. Other companies with similar public valuations include Workday and TE Connectivity, while private companies like Databricks and Anthropic also match this level. Figma’s IPO opening near $90 after a $33 price indicates high volatility. The trading halt at $93.50 shows this, meaning options premiums will be very high due to increased implied volatility. For traders, selling options through strategies like covered calls or cash-secured puts could be more appealing than purchasing costly options. The valuation at nearly 30 times next year’s predicted sales presents a significant premium. Looking back at the tech downturn in 2022 and the software price drops seen in early 2025, companies with high valuations often face declines. This suggests that bearish strategies, like buying put spreads to limit risk, might be wise to guard against a potential price drop. However, the 40-to-1 oversubscription indicates strong institutional interest that shouldn’t be overlooked. Stocks like Snowflake maintained high valuations for months after their 2020 IPO, supported by strong growth stories. Traders who anticipate this momentum could use bull call spreads to benefit from potential gains while limiting entry costs. An important event approaching is the IPO lock-up expiration, typically 90 to 180 days after the IPO. This usually means more shares enter the market, which can drive the stock price down. Data from recent tech IPOs in the first half of 2025 showed an average decline of 6% around this time, highlighting a possible trading opportunity. Given the mix of high valuation and strong demand, we can expect significant price fluctuations. This situation is perfect for volatility-based strategies like long straddles or strangles, which gain from major price movements in either direction. However, the high implied volatility means the stock will need to move significantly for these strategies to be profitable.

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