Quadruple witching day a quarterly phenomenon
Today is quadruple witching day! I know, it seems odd so far away from Halloween, but it actually happens four times a year, and it refers to a certain stock market event. There are not four magic sorcerers or stock traders wearing costumes with pointy hats.
Quadruple witching day simply refers to a day every quarter when several options contracts expire at the same time.
What effect does quadruple witching have?
On quadruple witching day, “stocks are more likely to push higher during the expirations.” This means that all three major markets are likely to finish higher today. However, the positive difference will have to be pretty big for any market to finish without a loss.
That reminds me, I should check on how my stock in that company that does payday loans with no faxing.
Quadruple witching hour
The magic on quadruple witching day actually happens all in the last hour of trading, which is called the quadruple witching hour. It falls the third Friday of March, June, September and December.
The quadruple witching hour is from 3 p.m. to 4 p.m. Eastern Standard Time, or, as they like to call it, New York Stock Exchange time.
The ‘quad’ in quadruple witching
Quadruple witching happens four times per year, but that isn’t where it got its name. Quadruple witching refers to four types of securities. Those four are: ... click here to read the rest of the article titled "Quadruple Witching Puts a Spell on the Stock Market"
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