expiration Friday

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Expiration Friday

The expiration date for three types of standardized contracts: stock options, stock index futures, and index options. Expiration Friday occurs four times a year, on the third Friday in the last month of each quarter. Investors often unwind their positions on these contracts on or immediately before expiration Fridays, which leads to increased trading volume and price volatility on those days.

expiration Friday

The Friday once each quarter when stock index futures, index options, and stock options simultaneously expire. Investors tend to close out positions in futures, options, and stocks on expiration Friday with the result being extremely volatile prices on this day. See also triple witching hour.
References in periodicals archive ?
Quadruple Witch Expiration Fridays occur once each quarter, when stock index futures, index options, stock options, and options on stock index futures simultaneously expire.
Firm Published Erroneous Quotations and Transactions At and Around Opening on a Quadruple Witch Expiration Friday
Market makers often receive large market-on-close orders on expiration Fridays and rebalancing days as customers adjust their portfolios to reflect the expiration of options, index options, futures and the rebalanced index.
The Committee also noted took notice that Morgan Stanley engaged in a similar pattern of pre-opening quoting activity in 67 other Nasdaq National Market securities underlying the NDX on those two expiration Fridays.
The index is re-balanced quarterly after the close of business on expiration Fridays on the March Quarterly cycle.