When it comes to investing in options, understanding the trading hours of your brokerage firm is crucial for making informed decisions and executing successful trades. Fidelity, one of the leading online brokerages in the United States, offers a convenient and reliable platform for options trading. In this article, we will delve into the intricacies of Fidelity’s option trading hours, exploring the various trading sessions, their significance, and how they impact your trading strategy.
Understanding Fidelity’s Option Trading Hours
Fidelity’s option trading hours align with the standard market hours established by the major options exchanges, namely CBOE, OCC, and BOX. These exchanges operate on a Monday through Friday schedule, with trading sessions opening at 9:30 AM Eastern Time (ET) and closing at 4:00 PM ET. It’s important to note that pre-market trading is available starting at 8:30 AM ET, while extended-hours trading is offered until 6:00 PM ET. However, these extended trading sessions may not be available for all option symbols.
Pre-Market and After-Hours Trading
Pre-market and after-hours trading sessions provide an opportunity for investors to place orders outside of regular trading hours. The pre-market session, which runs from 8:30 AM to 9:30 AM ET, allows traders to submit orders that will be processed and executed once the regular trading session commences. Similarly, the after-hours session, from 4:00 PM to 6:00 PM ET, allows investors to place orders that will be processed and executed at the next available market price. Keep in mind that liquidity may be lower during these extended trading sessions, leading to wider bid-ask spreads and potentially less favorable execution prices.
Regular Trading Hours
The regular trading hours, from 9:30 AM to 4:00 PM ET, constitute the main trading period for options on Fidelity. During this time, liquidity is typically at its highest, resulting in tighter bid-ask spreads and more efficient execution prices. This period is when the majority of trading activity occurs, and it is the primary time frame for most options strategies. It’s important to note that some options may have shorter trading hours, so always refer to the specific option contract specifications for the exact trading times.
Weekend Trading
Option trading is not available on weekends. The markets are closed on Saturdays and Sundays, and no trading activity takes place during these periods. Therefore, any orders placed outside of regular trading hours on Fridays will be processed and executed at the next available market open on Monday.
Trading Holidays
In addition to weekends, there are certain holidays when the markets are closed, and no trading activity occurs. These holidays include New Year’s Day, Martin Luther King Jr. Day, Presidents Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. It’s important to be aware of these holidays and adjust your trading plans accordingly.
Conclusion
Understanding Fidelity’s option trading hours is essential for maximizing your trading efficiency and profitability. By aligning your trading strategies with the available trading sessions, you can ensure timely order execution,
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Fidelity Option Trading Hours
