- Quadruple witching refers to a date on which derivatives of stock index futures, stock index options, stock options, and single stock futures expire simultaneously.
- This event occurs once every quarter, on the third Friday of March, June, September, and December.
- Quadruple witching days witness heavy trading volume partly because of the offsetting of existing futures and options contracts that are profitable.
- Investors may take advantage of the increased volume and arbitrage opportunities that result from quadruple witching.
- Quadruple witching does not necessarily translate to increased volatility in the markets.
Some entities got caught on the wrong side...
Back to normal next week.
Regards,
Digger0144