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Triple Witching
(redirected from Triple Witching Hours)

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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

What Does Triple Witching Mean?

An event that occurs when the contracts for stock index futures, stock index options, and stock options all expire on the same day. Triple witching days happen four times a year on the third Friday of March, June, September, and December. This phenomenon sometimes is referred to as Freaky Friday.

Investopedia explains Triple Witching

The final trading hour for that Friday is the hour known as triple witching. The markets are quite volatile in this final hour, as traders quickly offset their options and futures orders before the closing bell. Triple witching has a minimal impact on a long-term investor.

Related Terms:
Expiration
In the Money
Index Option
Stock Option
Strike Price



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