noun General Slang

Triple witching

· noun · finance

Quarterly Friday when stock options, index options and index futures all expire together.

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Definitions

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Third Friday of March, June, September and December. Three derivative classes — stock options, stock-index futures and stock-index options — expire on the same day. Hedges get unwound en masse, volume explodes, and weird closing prints are a feature, not a bug. (Single-stock futures made it 'quadruple witching' for a while, but those got delisted.)

“Volume on triple witching can hit three times an average Friday — algos love it.”
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Triple witching In A Sentence

Volume on triple witching can hit three times an average Friday — algos love it.

Origin & Usage

Variants triple-witchingtriple witching hour
Tags #finance#wall-street#options#futures

People Also Ask

What is triple witching?

It's the quarterly Friday when stock options, index options, and index futures all expire together.

When does triple witching happen?

It falls on one Friday each quarter, when those three types of derivatives simultaneously reach expiration.

Why does triple witching matter to traders?

The simultaneous expiration of options and futures can spike trading volume and volatility in the market.

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