Trading Overnight Cboe Options on TWS

Duration 2:31

Level Beginner

Interactive Brokers clients can trade selected Cboe products during Cboe’s extended global trading hours, 8:15 pm ET to 9:15 am ET Monday through Friday.

Study Notes:

Cboe Options Exchange offers extended global trading hours for index options in S&P 500 Index (SPX), Cboe Volatility Index (VIX), and Mini SPX Index (XSP) from 8:15 pm ET to 9:15 am ET Monday through Friday.

Interactive Brokers’ clients have access to the Cboe extended trading hours and are able to trade these selective products after-hours as long as they have Future Options trading permissions.

In this video the investor will enter a VIX Index option order after the regular trading day has ended, to be placed during Cboe’s extended global hours. The investor can enter the order directly into the Order Entry panel by typing the symbol, choosing “Options” from the drop-down chain, and picking a contract from the option chain or by clicking on a symbol displayed in a Watchlist. In this case the investor has set up a Watchlist with several option contracts from the Cboe that are available for overnight trading. The investor can use the Interactive Brokers Smart routing feature for these orders and does not need to specify Cboe as a destination.

Once the symbol is entered the investor chooses either the buy or sell button in the lower left hand of the Order Entry Panel. Enter the quantity and for order type, they will enter a value for the limit price. In the Time in Force drop-down the investor selects “Fill outside RTH”. A yellow triangle with an exclamation point will appear in the Time –in Force drop down. Hover over it to see available hours when the order may be filled. When ready click Submit, and an order confirmation box will appear showing that Outside Regular Trading Hours has been selected. When ready click Transmit, and the order will populate the Activity panel.

Submitting SMART routed index option orders using the Cboe’s suite of equity index and volatility products is a convenient way for clients to manage risk outside of routine trading hours.

Resources:

Overnight Trading

Disclosure: Interactive Brokers

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers, its affiliates, or its employees.

Disclosure: Displaying Symbols on Video

Any trading symbols displayed are for illustrative purposes only and are not intended to recommend a particular investment or investment strategy.

Disclosure: Options Trading

Options involve risk and are not suitable for all investors. For information on the uses and risks of options read the "Characteristics and Risks of Standardized Options" also known as the options disclosure document (ODD). Multiple leg strategies, including spreads, will incur multiple transaction costs.