SEC Approves Monday-Wednesday Options for Faster Stock Trading Action
Published Date: 1/22/2026
Notice
Summary
The SEC gave the green light to Nasdaq ISE to expand its Short Term Option Series Program, letting it list options that expire on Mondays and Wednesdays for certain stocks and ETFs. This change helps traders get more flexible and frequent trading opportunities without extra costs. The new options will start rolling out soon, making the market more exciting and dynamic for investors.
Analyzed Economic Effects
4 provisions identified: 1 benefits, 2 costs, 1 mixed.
More Monday & Wednesday Options Expirations
The Exchange may list up to two Monday and two Wednesday short‑term option expirations beyond the current week for certain qualifying stocks and ETFs. These series will be p.m.-settled, follow the same strike intervals as existing short‑term options, will not be listed on days with an earnings announcement after market close, and will not be listed when they would coincide with standard monthly or quarterly expirations.
Post‑Close Assignment and Strike Break Risk
The Commission and commenters noted risks from post‑close price moves between 4:00 and 5:30 p.m. ET that can cause exercise/assignment outcomes. The Exchange estimated that, for its sample Qualifying Securities, adding these expirations would have produced 66 additional strike breaks in 2024 (22 on Mondays and 44 on Wednesdays).
Operational Costs for Broker‑Dealers and Clearing Firms
Commenters said the additional Monday/Wednesday expirations could increase operational complexity, require more back- and middle-office resources, and impose substantial costs—potentially placing an undue burden on small broker‑dealers and creating risks for OCC clearing members. The Commission asked the Exchange to monitor trading to evaluate whether issues develop.
Only Very Large, Liquid Securities Qualify
A security can be eligible for the new Monday/Wednesday expirations only if, on a quarterly basis, it meets all four criteria: (1) for an individual stock, market capitalization greater than $700 billion (based on closing price) or (for an ETF) AUM greater than $50 billion (based on NAV); (2) monthly options volume greater than 10 million sides; (3) a position limit of at least 250,000 contracts; and (4) participation in the Penny Interval Program. The Exchange will publish the list of Qualifying Securities by close of business on the first trading day of each quarter.
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