Buying options requires precise timing to be profitable. Unlike selling options where time decay works in your favor, buyers are fighting against the clock. Every day that passes without the expected move erodes your option's value. In this guide, we will explore the optimal times to buy options to maximize your chances of success.
The Challenge of Buying Options
Options buyers face several headwinds that make timing critical. You need the stock to move in the right direction, by enough magnitude, within a limited time frame. Understanding when to enter can dramatically improve your results.
Key principle: Buy options when implied volatility is low and you expect volatility to increase or the stock to make a significant move. Avoid buying when IV is elevated unless you have a strong directional conviction.
Best Time of Day to Buy Options
The Opening Bell (9:30 AM - 10:00 AM ET)
The first 30 minutes of trading are notoriously volatile. While this might seem attractive for options buyers looking for movement, it is generally not the best time to buy. Spreads are wide, prices are erratic, and you may get poor fills.
- Bid-ask spreads are often 50-100% wider than normal
- Market makers adjust prices rapidly
- Better to observe than participate
Mid-Morning Sweet Spot (10:00 AM - 11:30 AM ET)
This is often the ideal window for buying options. The initial volatility has settled, the market has established a direction, and spreads have tightened. You can make more informed decisions about which direction to trade.
Why 10:00-11:30 AM Works
Economic data releases typically occur at 10:00 AM ET. Once this data is absorbed, the market finds its footing. Technical patterns become clearer, and you can identify whether to buy calls, puts, or wait for another day.
Early Afternoon (1:00 PM - 2:30 PM ET)
If you missed the morning opportunity, early afternoon can be another good entry point. The lunch lull is ending, institutional traders are returning, and you can often find better prices than during the morning rush.
The Final Hour (3:00 PM - 4:00 PM ET)
The last hour sees increased volume but also increased unpredictability. This window can work for day traders looking to capture end-of-day momentum, but overnight risk makes it challenging for swing traders buying options.
Best Day of the Week to Buy Options
Monday
Monday can be excellent for buying options if you correctly anticipate the week's direction. Weekend news and gaps often create opportunities. However, implied volatility tends to be higher on Monday mornings, making options more expensive.
Tuesday and Wednesday
These mid-week days often provide the best buying opportunities. IV has typically normalized from Monday, and you have several days until weekly expiration for your thesis to play out. Many professional traders focus their buying activity on these days.
Thursday
Thursday is a critical day for weekly options buyers. You have one day of theta decay remaining before Friday expiration. If you are buying weeklies, Thursday entry can work if you expect a quick move.
Friday
Buying options on Friday is generally not recommended unless you are purchasing for the following week or month. Same-day expiration options lose value rapidly, and you need a large move to overcome the time decay.
Best Time in the Volatility Cycle
Buy When IV is Low
The single most important factor for options buyers is implied volatility. When IV is low relative to its historical range, options are cheap. If volatility increases, your options gain value even without the stock moving.
IV Percentile Rule: Look to buy options when IV percentile is below 30%. This indicates that current IV is lower than 70% of readings over the past year, making options relatively inexpensive.
Before Expected Volatility Events
Options prices increase as anticipated events approach. Buying before earnings, FDA announcements, or other catalysts can be profitable if you time it correctly. The key is buying early enough that you benefit from the IV increase, but not so early that time decay eats into your position.
- Buy 2-3 weeks before earnings if playing the IV run-up
- Exit before the event to avoid IV crush
- If holding through the event, the move must exceed the expected move priced in
After Volatility Crush
After a major event like earnings, IV typically collapses. This post-event period can be an excellent time to buy options for the next move. The stock has made its reaction, IV is low, and you can establish positions cheaply.
Post-Earnings Buying Strategy
Company XYZ reports earnings and drops 8%. IV crashes from 60% to 35%. If you believe the selloff was overdone, buying calls the day after earnings gives you cheap options with room for IV to expand on any recovery.
Optimal Expiration Selection for Buyers
Too Short (0-7 DTE)
Very short-dated options offer high leverage but brutal time decay. These work only for precise timing on known catalysts. Most options buyers should avoid weekly options unless they have a specific short-term thesis.
Sweet Spot (30-60 DTE)
This range provides a balance between cost and time. You have enough time for your thesis to develop without paying excessive premium for time. Theta decay is manageable, and you can exit or roll if needed.
Longer-Term (90+ DTE)
LEAPS and longer-dated options give you the most time but cost more upfront. These are best for longer-term directional bets where you want to minimize time decay concerns. The tradeoff is lower percentage returns if you are correct.
Market Conditions Favoring Options Buyers
Trending Markets
Options buying works best in trending markets. When stocks are making sustained moves in one direction, directional options can be highly profitable. Look for established trends with strong momentum.
Low Volatility Environments
When the VIX is low (below 15), options are cheap across the board. This is an ideal environment to buy options in anticipation of increased volatility. Market calm does not last forever, and positioning before the storm can be lucrative.
Technical Breakout Points
Buying options at technical support or resistance levels can improve your timing. If a stock is testing a major support level, buying calls in anticipation of a bounce provides defined risk with significant upside.
Common Timing Mistakes Options Buyers Make
- Buying during high IV: Overpaying for options that will lose value even if the stock moves as expected
- Too little time: Buying short-dated options when your thesis needs weeks to develop
- Chasing moves: Buying calls after a stock has already run up significantly
- Trading the open: Getting poor fills during the first 15 minutes
- Ignoring the calendar: Buying before three-day weekends when time decay accelerates
- Averaging down: Adding to losing options positions instead of cutting losses
Putting It All Together: An Options Buying Framework
Before buying any option, run through this checklist:
- Is IV percentile below 50%? (Prefer below 30%)
- Is it between 10:00 AM and 11:30 AM ET?
- Is it Tuesday, Wednesday, or Thursday?
- Am I buying 30-60 DTE options?
- Do I have a clear thesis for why the stock will move?
- Is the market trending in my direction?
Analyze Your Options Timing
Pro Trader Dashboard tracks your entry timing across all trades, helping you identify patterns in your winning versus losing trades. Discover your optimal buying windows.
Summary
The best time to buy options combines low implied volatility, mid-week timing, mid-morning entry, and sufficient time to expiration. Buying between 10:00-11:30 AM ET on Tuesday through Thursday, with 30-60 DTE options when IV percentile is below 30%, positions you for success. Remember that timing alone does not guarantee profits - you still need a correct directional thesis - but good timing dramatically improves your odds.
Continue learning about options timing with our guides on weekly options timing and trading options around earnings.