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Quadruple Witching Day Today
By Jason Simpkins
Staff Writer
Expect increased trading volume and market volatility today (Friday) as index futures, market index options, stock options, and stock futures all expire on the same day. While index futures and options typically share simultaneous expirations on the third Friday of every month, quadruple witching days usually only come about on the third Friday of every March, June, September, and December.
Many investors scramble to unwind their positions in their contracts before they expire, which includes repurchasing contracts and closing out other positions used to hedge against those contracts. So, quadruple witching days are usually marked by periods of volatility in stock and derivative prices, and increased trading volumes.
September 21st, 2007
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This entry was posted
on Friday, September 21st, 2007 at 12:33 pm and is filed under Hedge Funds, Home Page, Special Profit Plays, Stock Indexes, Stocks, The Fed, Trade, U.S. Economy.
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