Magnificent Seven Options Get SEC Nod for More Expiry Days — A Subtle Shift That Could Change How Traders Play Big Tech
A regulatory decision in Washington is quietly reshaping how global traders may approach the world’s most influential technology stocks. The US Securities and Exchange Commission (SEC) has approved new expiry days for options on the so-called “Magnificent Seven” stocks — a move that brings markets closer to daily expiries in single-stock options and adds a powerful new dimension to short-term trading strategies.
The approval allows Nasdaq to list options expiring on Mondays and Wednesdays in contracts linked to Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. Until now, single-stock options typically expired only on Fridays. With this decision, the structure begins to resemble index options, which already offer daily expiries and have driven record volumes over the past six years.
For market participants, this is not just a technical change. It alters liquidity patterns, risk management approaches and potentially the volatility dynamics around earnings, data releases and news-driven moves in these stocks.
Why this regulatory decision matters more than it appears at first glance
The SEC’s approval marks an important evolution in the options market. Nasdaq first proposed these additional expiries in May, arguing that more frequent expiries would improve flexibility for traders and investors alike. The regulator has now agreed.
According to a notice on the SEC website, the new contracts will cover options on Alphabet Inc., Amazon.com Inc., Apple Inc., Meta Platforms Inc., Microsoft Corp., Nvidia Corp. and Tesla Inc. In addition, contracts will also be introduced for Broadcom Inc. and the State Street Financial Select Sector SPDR ETF.
David Barrett, head of product for US Options at Nasdaq, described the rationale clearly: “This decision supports greater flexibility and precision for market participants, enabling more efficient hedging and trading strategies,” he said in an emailed statement.
For global markets, especially those closely tracking US tech sentiment, the implication is straightforward. More expiries typically mean more trading activity, more liquidity, and more sophisticated short-term positioning — particularly around events like earnings announcements.
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Here’s what happened today and why traders reacted
The SEC’s approval triggered immediate attention among options traders and market participants focused on US equities, particularly those active in high-volume technology names.
What impacted the market today
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The SEC approved new Monday and Wednesday expiries for options on the Magnificent Seven stocks.
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Nasdaq confirmed it will begin listing these additional contracts.
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The move signals a step closer to daily expiries in single-stock options, similar to what already exists for major index ETFs.
Why traders reacted the way they did
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More expiry days give traders finer control over timing-based strategies, especially around news events.
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Short-dated options often attract higher retail participation, increasing liquidity and trading opportunities.
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Traders who already use zero-day-to-expiry (0DTE) strategies in index options now see similar opportunities emerging in individual stocks.
What signals investors are tracking now
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Whether volumes in these options rise as quickly as they did in daily index options.
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Whether increased speculative activity leads to higher intraday volatility in these stocks.
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How market makers adjust pricing and liquidity around these new expiries.
For active traders, this development directly affects portfolio strategy. For long-term investors, the impact is more indirect but still relevant, particularly in how price discovery and short-term volatility evolve in heavily owned stocks.
The Magnificent Seven are already retail favourites — this could intensify activity
The timing of this decision is significant. Options on big technology stocks are already among the most actively traded instruments globally. Retail investors, in particular, have gravitated toward these names due to their liquidity, familiarity and large price swings.
Index-based products such as SPDR S&P 500 ETF Trust, Invesco QQQ Trust and iShares Russell 2000 ETF already offer daily expiries, and their popularity has been striking. Since weekday expiries were introduced for major index options, trading volumes have climbed to consecutive record highs every year for the past six years.
Market participants expect a similar pattern could emerge in single-stock options for the Magnificent Seven.
SEC Deputy Secretary J. Matthew DeLesDernier acknowledged this in the approval notice. The change, he wrote, “may provide the investing public and other market participants more flexibility to closely tailor their investment and hedging decisions in these options, thus allowing them to better manage their risk exposure.”
How this changes the playbook for traders and portfolio managers
For traders, the practical implications are immediate. More expiry days mean more opportunities to express short-term views, hedge event risk, or deploy intraday strategies.
Some key shifts traders are already anticipating include:
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Increased use of short-dated options around earnings announcements
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More intraday hedging by institutional desks using stock-specific contracts
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Higher volumes in weekly and ultra-short-tenor options
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Greater tactical positioning around macro data releases impacting tech stocks
For portfolio managers, especially those managing large exposure to US technology stocks, the development could improve hedging efficiency. Instead of relying only on Friday expiries, managers can now choose midweek expiries that better align with risk events.
However, there is also a cautionary angle. A rise in short-dated speculative trading can amplify intraday volatility, even when long-term fundamentals remain unchanged.
What this means for investors watching US tech stocks from India
Indian investors increasingly track and invest in US equities, either directly through overseas platforms or indirectly via mutual funds and ETFs. The Magnificent Seven stocks are among the most widely held names in global portfolios.
For these investors, the change does not require immediate action. But it does help explain why short-term swings in stocks like Nvidia, Apple or Tesla may become more frequent around midweek sessions. More options activity often translates into more aggressive short-term price moves, even when long-term trends stay intact.
For traders who actively trade US markets, however, this is a meaningful shift. Strategy design, risk management and position sizing will need to account for the availability of additional expiries and the faster pace of opportunity.
A market structure change that could shape behaviour over time
While the SEC decision may not grab the same headlines as an earnings surprise or a macro shock, market structure changes often have lasting effects. Daily index options transformed trading behaviour over the past few years, drawing in retail traders, increasing liquidity and changing volatility patterns.
Single-stock options on the Magnificent Seven could follow a similar trajectory. These stocks already dominate global trading volumes. Giving traders more frequent expiries effectively deepens the ecosystem around them.
The true impact will unfold over time — through volume data, volatility trends and shifts in trader behaviour. But one thing is already clear: the way participants trade big tech stocks is about to become more granular, more flexible and potentially more intense.
