jessica_twt
03-20

Investors should also watch this Friday’s first Triple Witching Day of 2025.

What's Triple Witching Day? Triple witching refers to the simultaneous expiration of 3 types of derivatives on the same day, including index futures, index options and stock options. This event occurs on the third Friday of March, June, September, and December each year, making it a significant date for traders and investors in the financial markets. During this time, traders may rush to close or roll over their positions, leading to sharp price movements and heightened volatility. This phenomenon can result in substantial trading volume, as market participants adjust their strategies in response to the expirations

3 Major Indices Weekly Performance during March Triple Witching 1994-2024

Historical data shows that the major U.S. indices have over a 60% chance of gains during the March Triple Witching week! Over the past 31 years,

– The $S&P 500(.SPX)$ rose 21 times, with the highest probability of increase at 68%, a maximum gain of 7.5%, and a median return of +1%.

– The $Dow Jones(.DJI)$ increased 20 times, with a maximum gain of 8.43% and a median return of +0.81%.

– The $NASDAQ(.IXIC)$ went up 19 times, with a maximum gain of 8.18% and a median return of +0.74%.

However, due to the impact of COVID-19, the March Triple Witching week in 2020 saw the three major indices suffer their largest declines, each dropping over 12% in a single week.

After a month of sluggish market performance, will this week see a rebound and rebuild market confidence? Let’s take a look at the latest options analysis for some trending stocks.

OTM 0DTE Options: How to Play the Stock Market "Lottery"?
In the recent market volatility, trading has become more challenging. Some investors are turning to out-of-the-money options with short expiration dates, betting on a sudden market reversal, such as yesterday's epic single-day surge. Out-of-the-money options can indeed be a good tool to make big profits with small investments, but they carry immense risks, with 90% of them resulting in losses—sometimes referred to as the stock market lottery. Have you ever traded out-of-the-money options? Do you like the stock market lottery? Feel free to share your experience!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment