quad witching
The simultaneous quarterly expiration of four derivative types.
Definitions
Quad witching, or quadruple witching, is the day when stock-index futures, stock-index options, single-stock options, and single-stock futures all expire at once, usually the third Friday of March, June, September, and December. It often brings a surge in volume and volatility.
quad witching In A Sentence
Origin & Usage
From market 'witching hour' lore; 'quad' reflects the four expiring instrument types.
People Also Ask
What is quad witching?
It's the day when four types of derivatives, stock-index futures, stock-index options, single-stock options, and single-stock futures, all expire at the same time, usually the third Friday of March, June, September, and December.
Why does quad witching matter to traders?
Because the simultaneous expirations often trigger a surge in trading volume and volatility, especially near the market close.
How often does quad witching happen?
Four times a year, on the third Friday of March, June, September, and December.
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