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    Klarna shares debut at $52, peak at $57.20, then drop to $47.05

    by VT Markets
    /
    Sep 10, 2025
    Klarna shares started trading at $52 each, after being set at $40 before the IPO. The stock quickly rose to $57.20 but has now dropped to $47.05. Founded in 2005, Klarna is a Swedish company famous for its “buy now, pay later” services. Over the years, it has also added digital banking products like debit cards, savings accounts, and various financial tools. At its IPO, Klarna’s valuation was around $14 billion, raising about $1.37 billion. The stock’s initial surge and quick drop show that high volatility is expected in the coming weeks. For options traders, this means that the implied volatility for newly listed Klarna options will be quite high. Strategies that benefit from large price movements, such as buying straddles or strangles, will be worth considering. We must also look at the broader economic situation for the “buy now, pay later” industry. An August 2025 report indicated that consumer delinquency rates for these services rose to 4.1% in the second quarter, up from 3.8% a year earlier, as households face ongoing inflation. This might lead traders to consider buying put options to protect against potential losses as Klarna’s business model is challenged. Klarna’s IPO performance is similar to what happened with Affirm’s public debut in 2021. That stock had a big initial jump but then saw a significant decline as market conditions tightened and profitability questions emerged. This trend suggests that any strength in Klarna’s stock after the IPO might be a chance to set up bearish positions in the medium term. With a valuation of $14 billion, Klarna needs to prove its growth potential in a less forgiving market compared to a few years ago. The VIX, which measures market fear, is around 19 this month, creating a cautious atmosphere that could limit speculative rallies. As a result, selling call options at prices significantly above the current level could generate income by betting that the initial excitement from the IPO will fade.

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