triple witching hour

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Triple witching hour

The four times a year that the S&P futures contract expires at the same time as the S&P 100 index option contract and option contracts on individual stocks. It is the last trading hour on the third Friday of March, June, September, and December, when stock options, futures on stock indexes, and options on these futures expire concurrently. Massive trades in index futures, options, and underlying stock by hedge strategists and arbitrageurs cause abnormal activity (noise) and volatility.

Triple Witching

The last hour of trade on an exchange on the third Friday of March, June, September, and December. It is the time of expiration for three types of standardized contracts: stock options, stock index options, and stock index futures. Investors often unwind their positions on these contracts during or immediately before triple witching hour, which leads to increased trading volume on those hours. See also: Quadruple witching day.

triple witching hour

The hour before the market closing when options and futures on stock indexes expire on the same day, thereby setting off frenzied trading in futures, options, and underlying securities. Traders and arbitrageurs unwind investment positions and produce large price movements in securities. The triple witching hour occurs on the third Fridays of March, June, September, and December. See also expiration effect.
References in periodicals archive ?
exchanges, the most since March, because of quarterly event known as quadruple witching, when futures and options contracts on indexes and individual stocks expire.
The first day of trading coincides with the quarterly quadruple witching when futures and options contracts on indexes and individual stocks expire.
Friday is a quadruple witching day, meaning option and futures contracts will expire.
The perfect storm of rising oil prices, the possibility of increased interest rates, and swelling pressure on US regional banks signal a sharp spike in implied volatility this week as the market heads toward a quadruple witching on Friday June 20th.
Friday will be a quadruple witching day, with stock options, index options, index futures and stock futures all expiring.
The final full trading week of the year could be a bit volatile with earnings from three investment banks and quadruple witching.
Several upgrades, economic data, and the looming quadruple witching options expiration gave the market a hand.