When Do Options Markets Open and Close?
Get clarity on when options markets open and close. This guide covers the essential operational schedule and key variations for informed trading.
Options markets provide a way for investors to manage risk or speculate on the future price movements of various assets without directly owning them. An option is a financial derivative contract that grants the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price on or before a specific date. These underlying assets can range from individual stocks and exchange-traded funds (ETFs) to stock indexes, currencies, and even commodities.
Standard Trading Hours
The standard trading hours for options on U.S. equities and most exchange-traded funds (ETFs) are from 9:30 AM to 4:00 PM Eastern Time (ET), Monday through Friday. This 6.5-hour window aligns directly with the regular trading hours of major U.S. stock exchanges like the New York Stock Exchange (NYSE) and Nasdaq. During these hours, the options markets experience the highest liquidity, and the bid-ask spreads are at their narrowest.
The consistency in hours between options and their underlying stock markets helps ensure that options prices accurately reflect the current value of the assets they track. This synchronization allows investors to react to price changes in the underlying securities throughout the trading day. Trading outside these core hours can present challenges due to lower trading volumes and wider bid-ask spreads.
Market Closures and Special Trading Hours
Options markets, like other financial markets in the U.S., observe federal holidays. These include New Year’s Day, Martin Luther King, Jr. Day, Washington’s Birthday (Presidents’ Day), Good Friday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. If a holiday falls on a weekend, the market closure is observed on the preceding Friday or the following Monday.
In addition to full-day closures, there are instances of early market closures. For example, markets may close early at 1:00 PM ET on days such as July 3rd, the day after Thanksgiving, and Christmas Eve. For eligible options, the closing time on these early closure days can extend to 1:15 PM ET. These special hours apply across most major U.S. options exchanges.
Trading Hours for Different Option Types
While equity and ETF options adhere to the 9:30 AM to 4:00 PM ET schedule, trading hours can vary for other types of options. Certain broad-based index options, such as those on the S&P 500 Index (SPX), and some options on ETFs that track major market indices, may trade until 4:15 PM ET. This extended session provides an additional window for trading these specific products. For example, some Nasdaq options also trade until 4:15 PM ET.
Futures options have different trading hours that align with the nearly 24-hour nature of the underlying futures markets. Many futures markets operate from Sunday evening through Friday afternoon, with short daily breaks. However, for retail investors, specific pre-market or after-hours trading sessions for individual stock options, similar to those available for stocks, do not exist. While some brokers may offer extended hours for certain index options, these are exceptions and involve lower liquidity compared to regular hours.