World's First Pre-Market Options Trading Launches
Longbridge Securities has launched what it calls the world's first pre-market U.S. options trading. The new capability allows investors to trade options before the regular market opens, aiming to help them react to overnight news and overcome time zone barriers.
The new service extends the trading day by 5.5 hours, running from 4:00 a.m. to 9:30 a.m. Eastern Time. This timing is particularly aimed at investors in Asia and Europe, allowing them to trade during their respective evening and afternoon hours rather than overnight. Initially, the offering includes options on some of the most heavily traded U.S. stocks and ETFs. Among the available tickers are Apple (AAPL), Tesla (TSLA), Nvidia (NVDA), and major index funds like the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ). Longbridge has stated it plans to expand this list. Prior to this launch, options trading for most retail investors was largely restricted to standard market hours of 9:30 a.m. to 4:00 p.m. ET. While some index and ETF options had a brief 15-minute trading extension, broad pre-market access for single-stock options was not generally available. Regulators like FINRA caution that extended-hours trading carries distinct risks. These sessions often have lower liquidity and higher volatility, which can lead to wider gaps between bid and ask prices compared to regular trading hours. The launch coincides with recent overnight market volatility; for instance, escalating conflict in the Middle East caused oil prices to jump and defense stocks to rise in overseas markets before U.S. exchanges officially opened. This new window would allow options traders to react to such global news hours earlier. To attract users, Longbridge is offering zero commission and platform fees on pre-market options trades during an introductory period. The move is part of a wider industry trend toward 24-hour trading, aiming to give retail investors capabilities previously reserved for institutional players.
