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Triple Witching Friday; Watch for increased volume, abnormal price moves

Jun 21, 2019 (08:12)

by John Knobel

Freaky Friday

Watch For increased volume, abnormal price moves

What is Triple Witching Friday?

Triple Witching Friday happens on the third Friday of every third month (March, June, September, and December);
It is the simultaneous expiration of various futures and options contracts;
Triple witching is when futures traders will have to decide if they will maintain a position in a new none-expired contract or close their futures position (this could be buying or selling, depending on the direction of the trader’s original trade);
Traders may notice that the markets may become more volatile during these triple witching days;

Market Movers:

The VIX Index jumped +21.53% ahead of today’s Triple Witching Friday; The Chicago Board Options Exchange Volatility Index (VIX) reflects a market estimate of future volatility on the U.S. S&P 500 Index;
It can be observed on the below chart that both the S&P 500 and the VIX show an increase in price action when these two indices cross points;

Source: FXGM / Bloomberg

The original content of this Market Update is done in the English language. Any other language translation is provided for the sake of convenience. In case of any inconsistencies between the original English version and any other language, the original English version shall prevail.

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