Options Market Hours
When options trade and the key times that matter for your positions.
US options markets are open for regular trading from 9:30 AM to 4:00 PM Eastern Time, Monday through Friday, matching stock market hours. Some index options (like SPX) and ETF options (like SPY) also have extended or overnight trading sessions. Understanding when options trade — and when key events happen within those hours — helps you time entries, manage risk, and avoid common timing mistakes.
Why It Matters
Not all trading hours are equal. The opening 30 minutes typically have the widest spreads and most erratic pricing as market makers absorb overnight news and adjust their models. The closing 30 minutes can see increased volume from position adjustments. Expiration Fridays have unique dynamics throughout the day. Knowing these patterns helps you avoid paying too much in spread costs and time your trades for optimal execution.
For options sellers, understanding time dynamics is especially important. Theta decay is continuous but is only reflected in pricing during market hours. A position held over a weekend benefits from three calendar days of time passing while the market is closed — but any gap risk from weekend news is unhedged.
How It Works
Regular trading hours:
- Pre-market (4:00 AM - 9:30 AM ET): Stock trading occurs but options markets are closed for most contracts. You cannot trade most options during pre-market, even if the stock is moving.
- Market open (9:30 AM ET): Options trading begins. The first 15-30 minutes often have wide spreads and volatile pricing. Market makers are still adjusting.
- Mid-day (10:00 AM - 3:00 PM ET): Generally the most stable period with the tightest spreads and best execution quality.
- Power hour (3:00 PM - 4:00 PM ET): Volume increases as institutional traders make end-of-day adjustments. Spreads can widen in the final minutes.
- Market close (4:00 PM ET): Regular options trading ends. After-hours stock trading continues but options cannot be traded.
Extended hours for select products:
- SPX/VIX options: Trade nearly 24 hours (starting at 8:15 PM ET Sunday through 9:15 AM ET Friday on Cboe) in the Global Trading Hours (GTH) session
- SPY/QQQ options: Extended trading hours have been introduced, allowing trading before 9:30 AM and after 4:00 PM
- Futures options: Follow futures market hours, which extend well beyond stock market hours
Key times to know:
- 9:30 AM: Market open — avoid market orders during the first 5 minutes
- 10:00 AM: Most economic data releases happen before or at this time
- 2:00 PM: Fed announcements on FOMC days
- 3:50 PM: Approximate cutoff for most brokers to accept exercise notices
- 4:00 PM: Market close and options settlement pricing for PM-settled options
- 4:15 PM: Deadline for exercise by exception decisions at the OCC
Expiration day considerations:
- AM-settled index options (some SPX expirations) settle based on Friday opening prices
- PM-settled options settle based on the closing price
- Exercise cutoff is typically 5:30 PM ET on expiration day for customer-directed exercise
- Auto-exercise occurs for options $0.01 or more ITM unless the holder instructs otherwise
Holiday schedule: Options markets are closed on all stock market holidays. The day before a holiday often has reduced volume and wider spreads. Markets close early (1:00 PM ET) on certain days before holidays.
Quick Example
You sell a 45-DTE put spread on Monday morning at 9:32 AM. The quote shows a $0.08 spread. By 10:15 AM, the spread has tightened to $0.03. On a 10-contract position, waiting those 43 minutes saved you approximately $50 in execution costs.
On expiration Friday, you hold a short put that is near the money. At 3:00 PM, the stock is right at your strike. Volume surges as other traders close or roll expiring positions. Pin risk is highest during this final hour — the stock bouncing above and below your strike creates uncertainty about assignment. Closing the position by 3:30 PM eliminates this risk for a small cost.