Cboe Global Markets Inc. launched pre-market trading in single-stock options, like those on ETFs tracking major stock indexes.
Over 16,000 lots were traded in the initial session from 7:30 a.m. to 9:25 a.m. on Monday, according to data from Cboe. Contracts on the Invesco QQQ Trust ETF and the iShares Russell 2000 ETF were the most frequently traded, followed by those on Tesla Inc. shares, the exchange said.
The volumes were tiny compared with the roughly 71 million contracts that typically trade in the US options market each day. But the move — which included a brief after-hours session, as well — is part of a shift to extend trading hours across markets as several exchanges in December prepared to allow nearly 24-hour trading in stocks.
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“I don’t expect it to be needle moving coming out the gate” said Patrick Moley, a senior research analyst at Piper Sandler who covers Cboe. “But it is a step toward after-hours trading in a market still dominated by a single concentrated trading session between 9.30 a.m. and 4.00 p.m.”
Henry Schwartz, vice president of market intelligence at Cboe, said in a post on social media that the exchange is interested in seeing how how volumes and execution in the early session compares with the normal trading day.
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