Triple-Witching Dates · Invest & Retire Community

Triple-Witching Dates

Triple witching happens four times a year (or once a quarter) on the third Fridays of March, June, September, and December.

2024

March 15
June 21
Sept. 20
Dec. 20

Can Triple Witching Impact Stocks Beyond Broad Market Volatility?

Triple witching can influence individual stocks such as those with large options or futures contracts set to expire. As traders adjust or close their positions, there can be unusual movement in the stock’s price and volume. This is usually more pronounced in stocks with smaller market caps or those that trade heavily in the derivatives market. Caution is in order at this time since these price changes don't often reflect shifts in the underlying company's fundamentals.

Are There Strategies Traders Can Use For Triple-Witching Dates?

One strategy is to look for arbitrage opportunities from price discrepancies between the stock market and derivative markets. Also, some traders might take up a straddle strategy, holding both a put and a call option with the same strike price and expiration date, to try to profit from large price swings in either direction. However, these strategies have risks and are not recommended for less experienced traders.

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