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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The last quadruple witching was June 15, and S&P 500 trading volume surged 75 percent to 3.5 billion shares from the previous month, data compiled by Bloomberg showed.
exchanges, the most since March, because of quarterly event known as quadruple witching, when futures and options contracts on indexes and individual stocks expire.
Yesterday also marked the expiration of equity derivative contracts in the quarterly event known as "quadruple witching," which analysts said could have added to some of the positive momentum.
Fedspeak will run silent into next Wednesday's FOMC decision, where no change is near universally anticipated, though there could be some fireworks into Friday's quadruple witching settlement on stocks, futures and options that could dictate the tone near-term.
Friday also constitutes a quadruple witching session.
The exchange is unfazed that Alibaba is coming to market on a day known as quadruple witching that often sees extra volume and volatility due to the expiration of options and futures, he said.
The close of trading on Friday marks the quarterly expiration of September equity futures and option contracts, a convergence known as "quadruple witching," which may increase volume and swings in trades.
This week's quadruple witching is adding to the volatility, Kinahan said.
Analysts said they were encouraged by the UK fightback after a choppy session spent getting over the UK 'double witching' expiry of options and futures contracts earlier on Friday and bracing for 'quadruple witching' expires in New York.
Thinning pre-holiday conditions, along with quadruple witching settlement today on stocks, futures, options and options on futures should keep investors jittery.
equities are relatively flat pausing after the breakout to record highs this week on the blue chips, with quadruple witching settlements perhaps injecting some caution after recent run-ups, along with the split in tech and telecoms next week.
Trading has been quiet so far, but that may change near the close as the market faces both "quadruple witching" and a rebalancing of the S&P 500.