Triple Witching

What does it 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: the third Friday of March, June, September, and December. This phenomenon is sometimes referred to as "Freaky Friday."

In Other Words...
The final trading hour for that Friday is the hour known as triple witching. In this final hour, the markets are quite volatile as traders are quickly offsetting their option/futures order before the closing bell. If you are a long-term investor, then triple witching has a minimal impact on you.

Related Links
Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them.

Related Terms
Double Witching | Futures | Index | Option | Quadruple Witching | S&P 500 | Volatility

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