While spikes in volume usually occur around the open and close, providing windows of robust liquidity, large price swings can happen suddenly at any time of the day.“When we see the run-up like we’ve seen and you have investors trying to protect their portfolios, protect the gains and having the uncertainty still out there, you’ve got some big options positions in the markets right now and the decisions to roll them or not on that day is what drives the volatility,” said Chris Gaffney, president of world markets at TIAA Bank.After a relentless run that drove the S&P 500’s gain from its March trough to over 40%, the market has settled in a new range where traders have been whipsawed by hopes for a sharp economic recovery and fears over a second wave of coronavirus infections. If history is any guide, market may head lower after the event LONDON (Reuters) - In calm markets “quadruple witching” usually passes unnoticed, but some market players are hoping this Friday’s concurrent quarterly expiration of U.S. options and futures contracts could shake some sense back into stocks.

A A quadruple witching (uncountable) Simultaneous expiry on US markets of stock index futures, stock index options, stock options, and single stock futures, which takes place on the third Friday of March, June, September, and December. That’s partly because a lot of options contracts were way out of money, reducing the need to roll them over and trade stocks accordingly in portfolios.Goldman Sachs found that despite an elevated level in open interest, fewer than 2 million expiring contracts were within 10% of where the underlying index trades.

Since 1994, the options expiration in June has seen stocks falling 88% of the time over the following week, with the S&P 500 sliding 1.2% on average, the firm’s data showed.That pattern, along with some deteriorating momentum and breadth indicators, is a recipe for market weakness to Russ Visch, a technical analyst with BMO Capital Markets.“Between the current technicals and the historical tendencies, the bias appears to be the downside for equities all the way out into next week,” said Visch.
A (Prior to single stock futures those days were triple witching.) A

A By continuing to browse or by clicking “Accept All Cookies,” you agree to the storing of first- and third-party cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts The quadruple refers to four stock agreements that all expire: Stock index futures (buying/selling stocks on a future day) Stock index options (the right to buy/sell a stock on financial indexes, like … While those positions can be rolled over or unwound smoothly in calm markets, this can become very difficult in volatile markets where the average move of the daily stock index is above 2.5%, its biggest since the 2008 global financial crisis. A Quadruple Witching & Futures Levels for 9.20.2019 CME Raising their Monthly Data Fees & Trading Levels 3.31.2020 Price Limits & Circuit Breakers info, Daily Emini Russel Chart & Trading Levels 4.08.2020 Real-time quotes provided by This material may not be published, broadcast, rewritten, or redistributed. Edward Jones Investment Strategist Nela Richardson emphasizes people should look past headlines and focus more on what drives returns when investing.Quadruple witching refers to the once-a-quarter date when stock index The event occurs on the third Friday of the final month of the quarter, or in March, June, September and December, and typically brings increased volumes as traders close out positions or roll them over.Quadruple witching carries more importance in periods of increased volatility as traders need to prepare for the possibility of big price swings just ahead of expiration.In March 2020, for example, volatility surged as the COVID-19 pandemic prompted state governments to issue shelter-in-place orders that halted most travel, forced non-essential businesses to close and slowed the U.S. economy to a virtual standstill.As businesses have begun to reopen, volatility has waned but is still higher than normal levels over the past five years, potentially heightening the impact of derivative close-outs.Quadruple witching has less meaning in a low-volatility environment, although it can still lead to magnified swings.Quotes delayed at least 15 minutes.
ET Today, historically brings with it heightened volatility and trading.






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