Facebook options trading to begin on May 29

If everything goes as planned, Facebook options trading will begin in two weeks. More specifically, traders will be able to use options to speculate on the direction of Facebook shares starting on May 29. That's when U.S. options exchanges expect to list contracts on the FB stock, according to the International Securities Exchange (ISE).

Other U.S.-based options exchanges will likely follow suit, as long as trading volumes are met. With the hype surrounding Facebook right now, I really wouldn't be surprised if they exceed expectations.

Citadel Securities will serve as the Primary Market Maker for Facebook at ISE. The May 29 options listing date will hold assuming we see a successful completion of Facebook's initial public offering (IPO) on Friday. The ISE says contract specifications will be determined when the new listing is certified by The Options Clearing Corporation (OCC) prior to trading.

Earlier today, Facebook increased its IPO size by 25 percent. The social networking giant is now offering some 421.2 million shares. The news follows yesterday's IPO price range increase from $28-$35 to $34-$38 per share. This means Facebook could raise anywhere between $14.32 billion and $16.01 billion when it goes public.

Facebook is widely expected to start trading on the Nasdaq this week under the "FB" ticker. Many believe this Friday is the big day; shares will be priced on May 17, with trading beginning on May 18. Another rumor says there could be a delay, but as every day passes, that seems less and less likely.

See also:

• How much is Facebook worth?
• Facebook files for $5 billion IPO
• Facebook's IPO in pictures and Facebook's IPO by the numbers
• Facebook updates IPO filing to underline Zynga deal
• Facebook details Zuckerberg's $500,000 salary, 45% bonus
• Facebook amends IPO a fourth time, includes Q1 2012 financials
• Facebook sets $28 to $35 IPO price range
• Facebook roadshow kicks off with a video, IPO prospectus released