Quadruple Witching

Quadruple Witching occurs on the third Friday of every March, June, September and December.  On these days, contracts for stock index futures, stock index options, stock options and single stock futures (SSF) all expire.

Quadruple Witching

Quadruple Witching occurs on the third Friday of every March, June, September and December.  On these days, contracts for stock index futures, stock index options, stock options and single stock futures (SSF) all expire.

 


Interpretation of Quadruple Witching

Futures and options share simultaneous expiration on the third Friday of every month, but four times a year contracts for stock index futures, stock index options, stock options and single stock futures (SSF) all expire. The last hour of these trading days, from 3:00 to 4:00 p.m. EST, is referred to as the quadruple witching hour.

This results in a period of time when expiring contracts are closed out and new contracts entered, often causing greater-than-normal market volatility. Due to the increased volatility, many investors approach the markets differently on witching days.



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