Educational only, not tax, legal, or financial advice. Rules vary by broker and situation — verify specifics with your broker or a professional.

SPY options have limited extended-hours trading, and after-hours moves in SPY can still affect whether an expiring option finishes ITM or OTM. Here’s what to know outside regular hours.

The extended-hours reality

Most options liquidity is in regular hours (9:30–4:00 ET). There is some extended options trading on expiration days (SPY options can trade a bit past 4pm), but it’s thinner and not the deep, all-hours market you get in SPY shares or /ES futures. For practical scalping, treat options as a regular-hours instrument.

Why after-hours still matters

Even if you’re not trading options after 4pm, SPY’s after-hours price can move the settlement of an expiring option — an option OTM at 4pm can drift ITM in post-close trading and get auto-exercised (the penny-ITM trap). This is a real reason to close positions before the bell rather than assuming a 4pm OTM means safe.

SPY options are a daytime instrument — but the after-hours move in SPY can still decide an expiring option’s fate. Close before the bell to be sure.

What it means for a scalper

Trade SPY options in regular hours, and close before expiration so after-hours settlement drift can’t surprise you. If you want true 24-hour S&P exposure, that’s /ES futures, a different instrument. For NoVo’s SPY 0DTE approach, the regular session is the arena.