Friday may be a volatile day for the S&P 500 (SPX) and the Nasdaq 100 (NDX), as $5.7 trillion worth of options tied to individual U.S. stocks, indexes, and exchange-traded funds (ETFs) are set to expire. The quarterly event, known as “triple-witching,” is the largest March expiry since at least 1996, according to Citigroup.
Claim 30% Off TipRanks
Forget margin or options. Here's how the pros trade QQQPrevious triple-witching occurrences have led to volatile moves as traders are forced to close, roll, or rebalance options positions.
Triple Witching Nears as Options Volume Jumps
Options trading in indexes and ETFs reached record notional volumes in March, according to Citi. The firm noted that Regeneron Pharmaceuticals (REGN), Pinduoduo (PDD), and T. Rowe Price (TROW) could be subject to abnormal price action given that each stock has significant open interest in options that expire near current levels.
This quarter’s triple-witching expiration comes amid an already volatile backdrop marked by the war in Iran, surging gas and oil prices, and plunging rate cut odds.