The opening print is the first traded price of a security or option at the start of the trading session, determined by the opening auction. For options, the opening print can gap significantly from the prior close due to overnight moves in the underlying or changes in implied volatility.
⚡ KEY TAKEAWAY: Short premium positions often gap against you on the opening print after overnight news. Using limit orders rather than market orders at the open helps avoid paying inflated spreads during the first 15 minutes.
Why It Matters
The opening print sets the reference price for the day and determines overnight P&L for open positions. Options spreads can widen to 3-5x normal during the opening rotation, making market orders at the open extremely expensive for premium sellers.
How It Works
The opening auction collects pre-market orders and matches them at a single clearing price. Options opening prints often gap from the prior close due to overnight moves in the underlying, changes in implied volatility, and the batch nature of the opening cross.
Example
A premium seller's short SPY 440 put closed at $1.50 yesterday. Overnight, SPY futures drop 1.5%. The 440 put opens at $3.20 with a $2.80-$3.60 bid-ask spread. Placing a market order to close would cost $3.60. Waiting 15 minutes for spreads to normalize gets a fill at $3.00.
Common Mistakes
Traders panic-close short premium positions at the open using market orders. The first 15 minutes have the widest spreads and worst fills. Unless you have a hard stop, wait for the opening rotation to settle. Set a limit order at the midpoint and wait for a fill.
The opening print is the first traded price of a security or option at the start of the trading session, determined by the opening auction. For options, the opening print can gap significantly from the prior close due to overnight moves in the underlying or changes in implied volatility.
Why does Opening Print matter for premium sellers?
Short premium positions often gap against you on the opening print after overnight news. Using limit orders rather than market orders at the open helps avoid paying inflated spreads during the first 15 minutes.
How does Opening Print work?
The opening auction collects pre-market orders and matches them at a single clearing price. Options opening prints often gap from the prior close due to overnight moves in the underlying, changes in implied volatility, and the batch nature of the opening cross.
What are common mistakes with Opening Print?
Traders panic-close short premium positions at the open using market orders. The first 15 minutes have the widest spreads and worst fills. Unless you have a hard stop, wait for the opening rotation to settle. Set a limit order at the midpoint and wait for a fill.
