Quadruple witching day

Quadruple Witching Day

The expiration date for four types of standardized contracts: stock options, stock index options, stock index futures, and single stock futures. Quadruple witching day 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 quadruple witching days, which leads to increased trading volume on those days. See also: Triple witching hour.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Quadruple witching day.

Once every quarter -- on the third Friday of March, June, September, and December -- stock options, stock index options, stock index futures contracts, and single stock futures expire on the same day in the United States.

In the past, when all contracts expired at the same hour of the day, trading could be extremely volatile as professional investors attempted to capitalize on pricing differences.

But in recent years, various adjustments in the trading schedule have helped to reduce the pace.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Friday also marked "quadruple witching day," the quarterly simultaneous expiration of U.S.
The so-called "quadruple witching day" hit trading on the Footsie, with early session gains of more than 30 points wiped out as futures and options expired at the same time - which only occurs four times a year.
Wall Street braced for added volatility on quadruple witching day, when contracts for stock index futures and options, stock options and single stock futures expire.