Triple Witching Friday 17th September 2010
“Watch out for the Wicked Witch Tomorrow”
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Triple witching is when the contracts for stock index futures, stock index options and stock options all expire on the same day.
Triple witching can be a volatile day as traders in the expiring contracts scramble to close their positions and as they do this can push the market up or down.
Most of this action from triple witching occurs in the final hour or so of the market, this usually adds alot of volatility movements in the market.
Some traders may use this increase in volatility to profit from, but it’s really difficult to know whether the action will push the market up or down.
