While the standard monthly options expire on the third Friday, the weekly options designed to align with this event require an earlier cutoff. For weekly expirations, the market closes early on the third Friday of every month.
Options Market Close Trading Calendar: Early Close on Third Friday
The official close occurs at 4:00 PM ET, but the process of determining the closing value extends slightly beyond this point to ensure fairness and accuracy in the settlement process. The standard window for equity options trading runs from 9:30 AM to 4:00 PM Eastern Time, aligning with the traditional session for stocks.
While the underlying stock market operates on a defined timeline, the derivatives segment follows its own specific hours, which can shift depending on the season. Weekly Options and the Friday Factor Traders who focus on weekly options must pay particularly close attention to the schedule, as these products adhere to a stricter timeline.
Options Market Close on Third Friday for Weekly Expirations
Option Type Typical Expiration Day Market Close Time Monthly Third Friday 4:00 PM ET Weekly (Standard) Friday 4:00 PM ET Weekly (Third Friday) Friday Early Close The Role of the Close Process It is a common misconception that trading stops exactly at 4:00 PM sharp. The early close on this specific Friday is not merely a formality; it is a necessary adjustment to accommodate the volume of activity.
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