After-Hours Options Trading: Can You Trade Options Outside Market Hours?

The short answer: most options can only be traded during regular market hours (9:30 AM to 4:00 PM ET). But the landscape is evolving, and certain products already offer extended-hours trading.

Standard Equity Options: Regular Hours Only

Options on individual stocks (AAPL, TSLA, AMZN, etc.) and most ETFs (SPY, QQQ, IWM) trade exclusively during regular market hours:

  • Market open: 9:30 AM Eastern
  • Market close: 4:00 PM Eastern
  • No pre-market or after-hours trading

    • This means you can't buy or sell AAPL calls at 7:00 PM, even though AAPL stock is trading in the after-hours session. Your options positions are locked until the next market open.

    Why This Matters

    After-hours stock movement can be significant, especially around earnings announcements. A company might report earnings at 4:05 PM, and the stock could move 10-20% in after-hours trading. If you're holding options, you can't react until the next morning at 9:30 AM.

    This creates overnight gap risk. Your call might be worth $5.00 at 4:00 PM, then the company misses earnings and the stock gaps down 15%. By 9:30 AM, your call might be worth $1.00. You had no opportunity to exit during the decline.

    This is one reason many traders close options positions before earnings rather than holding through the announcement. The inability to manage the position during the after-hours reaction is a real limitation.

    Index Options: Extended Hours

    Certain index options offer extended trading hours that go beyond the standard session:

    SPX Options (S&P 500 Index)

    SPX options on Cboe have extended trading hours:

  • Regular session: 9:30 AM - 4:15 PM ET
  • Global Trading Hours (GTH): Starting from overnight through the regular session

    • This means you can trade SPX options during significant global events that happen outside US market hours. If European markets crash overnight, you can adjust your SPX positions before the US open.

    VIX Options

    VIX options also offer extended hours through Cboe's GTH session. Since volatility events often originate overseas or during off-hours, this expanded access is valuable for volatility traders.

    Expiration Day Considerations

    On expiration day, there's a critical nuance:

  • Options stop trading at 4:00 PM ET (4:15 PM for index options)
  • Stocks continue trading until 8:00 PM ET in after-hours
  • Option holders can exercise until 5:30 PM ET

    • This 90-minute window between 4:00 PM and 5:30 PM creates risk for options sellers. A stock might be $0.50 OTM at 4:00 PM, making your short option seem safe. But if the stock rallies $1.00 in after-hours, the option holder can exercise against you even though you can't trade the option to close it.

    How Traders Work Around Limited Hours

    Pre-Position Before Events

    If earnings or economic data is released after hours, set up your position during regular hours:

  • Buy protective puts before the close if you're worried about a negative reaction
  • Sell straddles before the close if you're betting on a smaller-than-expected move
  • Close positions entirely if you don't want after-hours exposure

    • Use Stock Positions for After-Hours Hedging

    If you hold options and need to hedge after hours, you can buy or sell the underlying stock in the extended session. Stock trades on most major platforms from 4:00 AM to 8:00 PM ET.

    Example: You're long 10 AAPL calls and AAPL reports bad earnings at 4:05 PM. You can't sell the calls, but you could short sell AAPL stock after hours to offset some of the loss your calls will experience by morning.

    This is an imperfect hedge, but it's sometimes the only tool available.

    Use Futures Markets

    S&P 500 futures (/ES) trade nearly 24 hours a day, Sunday evening through Friday afternoon. If you have a large SPY options position and need to hedge overnight, futures provide continuous access. Futures require a separate approval and margin, but they're the standard hedging tool for professional options traders.

    The Future of After-Hours Options

    The options industry is moving toward expanded hours. Several developments are underway:

    24-hour equity options are being discussed by exchanges. The demand is driven by global trading and the increasing frequency of after-hours catalysts (earnings, geopolitical events, pre-market economic data).

    Exchange competition is pushing innovation. As exchanges compete for volume, extended hours become a differentiator. Cboe's SPX extended hours have been successful, encouraging similar offerings.

    Retail demand for after-hours options is strong. Many earnings moves happen entirely outside regular hours, and traders want the ability to react in real time.

    Practical Recommendations

    For now: Accept that most options trade only during regular hours and plan around it.

  • Don't hold short-term options through after-hours catalysts unless you've sized the position to absorb a gap
  • Use the 30 minutes before the close (3:30-4:00 PM) to make final adjustments to expiring positions
  • If you trade SPX or VIX options, take advantage of the extended hours when relevant
  • Monitor after-hours stock movement to prepare your options orders for the next morning's open

    • For the morning after an event: Have your orders pre-planned. Know what you'll do at the open based on the stock's after-hours move. The first 15 minutes of trading after an earnings gap are volatile and wide-spreaded. Consider waiting until 9:45-10:00 AM for spreads to tighten before entering or exiting positions.

    When monitoring overnight gaps and their impact on your options portfolio, OptionsPilot shows updated position values as soon as the market opens, helping you quickly assess which positions need immediate attention.