Nasdaq to Add Monday and Wednesday Expiring Options for Big Tech and Bitcoin ETF

Nasdaq announced that starting January 26, 2026, it will offer short-term options (STOs) for nine high-profile tickers, including major technology stocks and the iShares Bitcoin Trust ETF (IBIT), featuring Monday and Wednesday expirations. This expansion further enriches Nasdaq’s short-term options program, providing investors with greater flexibility for trading and hedging.

The newly eligible tickers include:

• Big Tech stocks: Nvidia (NVDA), Tesla (TSLA), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), Amazon (AMZN), and Broadcom (AVGO)

• Other assets: Bitcoin ETF — iShares Bitcoin Trust (IBIT)

Short-term options typically expire within one week. Monday and Wednesday expirations allow investors to implement short-term strategies and manage risk without waiting for standard monthly or weekly expiration dates.

Eligibility Criteria for Short-Term Option Tickers

According to Nasdaq ISE’s short-term option series rules, securities must meet strict size, liquidity, and structural requirements to qualify:

1. Mega-Cap Requirement

   • Individual stocks: Market capitalization greater than $700 billion (based on closing price)

   • ETFs: Assets under management (AUM) greater than $50 billion (based on net asset value)

   • Assessment is based on the last trading day of the most recent calendar quarter.

2. High Liquidity

   • Total monthly option trading volume in the month prior to the quarter-end must exceed 10 million contracts (one-sided count).

3. Structural Requirements

   • Minimum open interest of 250,000 contracts

   • Participation in the Penny Interval Program to ensure higher strike price granularity

These criteria ensure that short-term options are listed on securities with sufficient trading depth, market interest, and risk management capacity.

Trading Considerations and Key Rules

Several important points for investors trading these short-term options:

1. Physical Settlement

   • Unlike cash-settled index options (e.g., SPX), these individual stock and ETF options settle through physical delivery, meaning that holders may be required to buy or sell the underlying security at expiration.

2. Avoiding Earnings Dates

   • To reduce extreme volatility, Nasdaq will not list short-term options on a Monday or Wednesday that coincides with the underlying company’s earnings release.

   • Similarly, if the Monday or Wednesday is already a standard monthly or quarterly expiration, no additional short-term options will be listed to avoid duplication.

3. Differences from Standard Options

   • Investors should be aware of accelerated time decay (Theta) and heightened Gamma sensitivity in these short-term options, which make them more suitable for experienced, active traders rather than long-term holders.

Market Implications and Investor Outlook

The launch of Monday and Wednesday expirations is a structural enhancement for Nasdaq’s derivatives market and reflects strong demand for more flexible expiration dates:

• Enhanced risk management: Investors can hedge or speculate around short-term market events such as macroeconomic data releases or sector news.

• Improved liquidity and efficiency: More frequent expiration dates help distribute hedging demand and may improve price discovery.

• Expanded cryptocurrency derivatives: Including IBIT shows growing investor interest in regulated Bitcoin-linked options.

Analysts expect these short-term options to attract active traders, quantitative teams, and institutional participants seeking short-term hedging opportunities, potentially increasing market participation and contributing to a more mature U.S. equity options market.