Starting Monday, Cboe Global Markets will extend trading hours for options on 24 actively traded stocks and five ETFs, following SEC approval. The new trading hours will be from 7:30 a.m. to 9:25 a.m. ET and 4:00 p.m. to 4:15 p.m. ET, marking a significant step towards around-the-clock trading.
This expansion includes well-known companies such as Oracle, Micron, and popular retail-trading names like Robinhood and Palantir, as well as ETFs like the SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust (QQQ). The decision is driven by increasing popularity, with a record average of 228,097 options traded in pre-market sessions last quarter.
Rob Hocking, Cboe's global head of derivatives, emphasized that more investors are recognizing the benefits of options for portfolio management. To qualify for extended hours, securities must meet specific criteria, including an average daily volume of 150,000 contracts and a market value of at least $50 billion.
Brokers such as TradeStation and Robinhood will facilitate trading during these new hours. John Bartleman, CEO of TradeStation, noted that this expansion allows traders to react promptly to market-moving events.
Additionally, Cboe plans further options market structure enhancements, including new morning expiries and the introduction of binary options linked to company-specific KPIs, indicating a broader trend towards increased trading flexibility and innovation in the options market