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NEWS

Summer Triple Witching Overbought Market

  • Chronicle Trade Group, LLC
  • Jun 18, 2024
  • 1 min read

Updated: Dec 24, 2024

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Triple Witching sounds like the return of Halloween XVX Michael Myers Rebirth, but this phenomenon occurs four times a year, concludes five days of the stock The Market trading session on the third Friday of every March, June, September, and December.


Expiration of three kinds of securities:

  • Stock Options

  • Stock Index Futures

  • Stock Index Option Contracts


The echo market situation often elevates investors/traders to repurchase contracts and/or sell their market positions closing their contracts. Both must finish their futures and options contracts on the expiration day. They have the option to hedging their positions, re-positions their long/short positions or closing out all of their options and futures positions.


All of this market activity by the options and futures traders often leads to a very noticeable increase in trading volumes for The Market that week; most expect that trading volume during quadruple witching days can be as high as 50% more than a normal trading week.


Embrace the Uncertainty of Probability! Summer Heat❤️‍🔥

 
 
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