"Triple witching" is here - definition by AI below

https://tigr.link/s/60Agn7M

Triple Witching Explained

Definition:

Triple witching refers to the simultaneous expiration of three types of derivatives contracts on the same trading day:

- Stock Options (individual equity options)

- Index Options (e.g., options on the S&P 500, Hang Seng Index)

- Index Futures (e.g., futures tied to a market index)

This event occurs quarterly (third Friday of March, June, September, and December).

Key Market Impacts:

Heightened Volatility: Large volumes of expiring contracts force traders to close, roll over, or hedge positions, often amplifying price swings.

Volume Surge: Trading activity spikes as market makers and arbitrageurs adjust portfolios.

Pin Risk: Asset prices may hover near critical strike prices, creating uncertainty about option exercise outcomes.

Temporary Distortions: Rapid rebalancing can cause short-term price dislocations (e.g., "max pain" levels).

Strategic Considerations:

Avoid Illiquid Positions: Sudden liquidity crunches can exacerbate slippage.

Watch Expiry Times: In some markets (e.g., U.S.), contracts settle at market close; in others (e.g., Europe), times vary.

Post-Event Stability : Volatility often subsides after expiry, but follow-through trends may emerge.

Example:

On March 21, 2025 (today's date in Asia/Singapore), triple watching could affect markets like Hong Kong's Hang Seng Index if derivatives tied to it expire.

Disclaimer:

Triple witching can create tactical opportunities but requires caution. Market behavior varies by region and liquidity conditions. Always verify real-time data and consult a financial advisor before trading.

Note: Some markets (e.g., U.S.) have "quadruple witching," adding single-stock futures to the mix.