What Is Quadruple Witching?

Conclusion 

Contrary to any first impressions upon hearing the term Quadruple Witching, there is nothing supernatural about those days in the market. The contracts for futures and options on indices and single stocks happen to expire on the same day, once a quarter. Because there are four types of contracts expiring, you get the term “Quadruple."

While it may have once been true that the markets moved “wildly” due to the confluence of those instruments expiring on the same day, much of those swings have simply dissipated for one reason or another. The increased volume on those days, and especially the final hour, may still be present, but most traders need not fear the “Witch."

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Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are ...

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