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Here’s something that’s been bugging me lately.
The Cboe just announced it’s opening options trading at 7:30 a.m. ET on a bunch of high-volatility retail-favorite stocks. And while everyone’s getting excited about the extra trading hours, I’m over here seeing nothing but red flags.
Look, I get the appeal. More time to trade. More opportunities. Sounds great on paper.
But here’s what nobody’s talking about — we have no idea how these options are going to be priced in that early window.
And that’s a massive problem.
Someone asked me recently if I was planning to trade during that new 7:30 a.m. session. My answer? I don’t think I’m going to feel comfortable trading it for a good while because I don’t know how they’re going to price those contracts yet.
Here’s why that matters so much.
The Math Doesn’t Add Up
On a 0DTE option, you’re talking about the time curve changing by 30% with just two hours added. That’s not some minor technical adjustment — that’s a 30% change in the 0DTE time value of an option.
And that kind of shift isn’t happening on cheap, slow-moving contracts. It’s happening on options that are already high volatility and expensive, which makes the overnight adjustment even more extreme.
Think about that for a second. The same option you thought you understood is now operating under completely different pricing dynamics before the regular session even starts.
But it gets worse.
We have tons of 8:30 a.m. announcements — CPI, PPI and all the economic data that moves markets. And we don’t know how they’re going to price those leading into those 8:30 a.m. announcements.
That volatility will probably stay extremely high, then crash, then hold again. You could end up with two different volatility curves in the same option within a couple of hours.
That’s not a trading opportunity. That’s chaos.
Don’t Believe the Hype
I’ve already seen people positioning themselves as experts on this new trading window. Making predictions. Talking about strategies.
Here’s my take: If anyone claims they know how these options are going to be priced or what the opportunity is right now, I think they’re full of it.
We simply won’t know anything meaningful until we’ve actually seen a few early-morning CPI and PPI days play out and watched how the skew behaves going into them. Until there’s real data from real sessions, everything else is just guessing.
And when you’re dealing with contracts this sensitive to time and volatility, guessing is the fastest way to blow up an account.
I know this might sound boring coming from a guy who loves trading aggressively. But I’d be really careful with those options.
The reality is pretty simple: The Cboe is going to open up two hours of morning trading on essentially all of those high-volatility retail-favorite stocks. And I feel like that could end up not being great for the average trader.
Here’s what I’m watching instead: How the market makers price these contracts over the next few weeks. What happens to the spreads. How volatility behaves around those 8:30 a.m. announcements. Whether the big institutional sweeps that used to come in at 3:59 p.m. start showing up at 7:30 a.m. instead.
All of that will tell us whether there’s actually an opportunity here — or just a new way to lose money faster.
For now? I’m sitting this one out. And I’d encourage you to think twice before jumping in just because the window’s open.
Now don’t forget to join us at 10 a.m. ET weekdays for Opening Playbook, and at 3:30 p.m. ET Closing Playbook!
Nate Tucci
Tucci Trades
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