I have been trading stocks for a while and got used to after hours trading. Now I am looking into options trading.
Do options work the same way? Can they be traded after regular market hours or is it different?
I want to understand this before I start.
Binary options on Pocket Option trade 24/7, so it’s a different setup.
Options trading stops at 4 PM when markets close - no extended hours like stocks get.
SPX index options run until 4:15 PM. Some major ETF options trade after hours, but liquidity dries up and spreads widen.
Most individual stock options? They’re done at market close.
Most options stop trading at 4 PM EST. Some index options (SPX, NDX) go until 4:15 PM. ETF options like SPY can trade after hours, but only with certain brokers.
Regular and binary options aren’t the same thing. Most standard options stop trading at 4 PM, but binary options run 24/7. You can trade currencies, commodities, and indices whenever you want - even weekends. The big difference? With binary options, you’re just betting on whether the price goes up or down, not buying contracts that might expire worthless.
Options trading is quite different from stocks when it comes to after-hours sessions. Most options cannot be traded after 4 PM EST when the regular market closes. I learned this the hard way trying to sell a losing SPY put after hours but couldn’t do anything.
Some brokers do allow trading for a few ETF options during extended hours, but it’s very limited. I’ve been burned too many times holding options overnight and missing out on reacting to news. Stock trading spoils you because you can trade almost any time.