A method for creating an opening in tubular knitted fabric articles, including the steps of providing a knitting machine (10) having a plurality of needles (30) mounted in axial needle slots (16) in a needle cylinder (12), the needles having a hook (34) formed in a top end of a needle shank (32) and a latch (42) pivotally mounted on the needle shank below the hook for opening and closing the hook. A deflector (26) is provided for deflecting a loop of yarn being formed by a needle into the vertical plane of an adjacent needle. A needle is selected from which a loop is to be transferred. The loop on the selected needle is enlarged by deflecting the loop out of the vertical plane of the selected needle laterally into the vertical plane of an adjacent needle while the adjacent needle is in a lowered, non-interfering position relative to the deflected loop. The adjacent needle is moved upwardly into the enlarged loop, and the selected needle is thereafter removed from the deflected loop, whereby the loop is transferred to the adjacent needle and an opening is present in the fabric in the position of the selected needle. An apparatus for practicing the method is also disclosed and claimed.