RE:RE:RE:RE:RE:RE:RE:RE:What's with the crazy volumes today?Or , to pile on, all Futures and options contracts are based on underlying securities /security. At expiry, the contract holder either takes delivery of the underlying security or unwinds the contract by selling/covering it. If there are large quantities of contracts and limited liquidity in the underlying, there can be higher than usual volatility and/or volume. It compounds for stocks in the index.
peasoupfog wrote: Quadtruple Witching Friday... What Is Quadruple Witching? The term quadruple witching refers to the date on which certainderivativescontracts expire simultaneously. This happens with four different types of contracts, including stock index futures, stock index options, stock options, and single stock futures. Quadruple witching dates occur four times a year on the third Friday of March, June, September, and December. Market activity on these days is typically highest during the last trading hour as traders try to move on these contracts. KEY TAKEAWAYS 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.
peasoupfog wrote: [ Here's the explanation on another board. https://stockhouse.com/companies/bullboard/v.dsv/discovery-silver?postid=34766300 quote=tannin]All in last 15 minutes of trading.....maybe an arranged trade at agreed price between two big boys ?
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