What Time Do Options Stop Trading for the Day?
Learn the precise daily closing times for different options and understand key distinctions beyond market close.
Understanding when options stop trading is important for financial market participants. Options contracts allow for buying or selling an underlying asset at a predetermined price, and their value can fluctuate significantly based on market movements. Knowing the operational schedule helps traders manage positions and respond to market events effectively.
Standard US Equity Options Trading Hours
Most US equity and exchange-traded fund (ETF) options adhere to a standard trading schedule, aligning with major US stock exchanges. These options begin trading at 9:30 AM Eastern Time (ET) and conclude at 4:00 PM ET, Monday through Friday. This 6.5-hour window provides the period when most options transactions occur, often characterized by higher liquidity and narrower bid-ask spreads.
Trading hours can be affected by market holidays observed throughout the year. On certain holidays, markets, including options exchanges, remain closed. Examples include New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. Additionally, some days preceding or following a holiday may feature an early market close, at 1:00 PM ET, with eligible options potentially trading until 1:15 PM ET. Traders must consult official exchange calendars to confirm specific schedules.
Trading Hours for Other Option Types
While equity and ETF options cease trading at 4:00 PM ET, some other types of options have extended trading hours. Certain broad-based index options, such as those on the S&P 500 Index (SPX) and Nasdaq 100 Index (NDX), trade until 4:15 PM ET. This additional 15-minute window provides a brief extension for participants to manage positions in these widely followed indices. The extended hours for these products can be particularly useful for traders reacting to late-day news or global market developments.
Futures options operate on a different schedule, often extending for much longer periods than equity options. Their trading hours correspond directly with the underlying futures contracts, meaning they can trade nearly 24 hours a day, five days a week, with short breaks. Many futures and their options begin trading Sunday evening and continue until Friday afternoon, with a brief daily pause for market reconciliation. Specific trading times for futures options vary by product and exchange, requiring a review of the exchange’s published schedule for precise details.
Trading End vs. Exercise Deadlines
A common area of confusion for options traders involves distinguishing between when an option stops trading and its exercise deadline. For American-style equity options, while trading ceases at 4:00 PM ET on the expiration day, the holder has a later deadline to decide whether to exercise the option. This exercise decision for American-style options, which can be exercised at any point up to and including expiration, extends until 5:30 PM ET on the expiration day. Brokerage firms may set an earlier internal cut-off time for receiving exercise instructions to meet the exchange’s deadline.
European-style options, commonly used for many index options, differ in their exercise characteristics. These options can only be exercised on their expiration date, not at any time before it. European-style index options are cash-settled, and their exercise is automatic based on the closing price of the underlying index on the expiration day, eliminating the need for a separate exercise decision window after trading concludes. The focus of trading hours remains on when market participants can actively buy or sell the option contract, rather than the later administrative processes of exercise or assignment.