BTS
12-22 15:38

"Quadruple Witching" is when a lot of stock and index options and futures contracts expire, causing increased volatility and potential price swings, especially for the S&P 500

Wall Street faced a record-breaking $7.1 trillion options expiry, with $5 trillion tied to the S&P 500 and $880 billion to individual stocks, making it a massive deadline day where trillions in trading contracts expire at the same time, causing the busiest trading day of the year

The index successfully stayed above the 6,800 level, proving that buyers were strong enough to keep the market from falling

The "pinning effect" kept the index around 6,800 as traders focused on that price due to options expiring, but big market swings dominated the final hour as traders adjusted massive year-end positions

With the S&P 500 holding 6,800, the market looks healthier heading into the holidays, likely setting the stage for the start of the "Santa Claus Rally"。。。

Tag :@Huat99  @Snowwhite  

The Biggest “Quadruple Witching” Coming! Can S&P 500 Hold 6,800?

@Tiger_comments：
This Friday, Wall Street faces a record-breaking options expiry—a total of $7.1 trillion! About $5 trillion tied to $S&P 500(.SPX)$; About $880 billion tied to individual stocks According to Goldman Sachs, roughly $5 trillion of this exposure is tied to S&P 500, while another $880 billion is linked to individual stocks. The extraordinary concentration of these expiring contracts could amplify market volatility heading into year-end, with traders closely monitoring whether S&P 500 can hold the 6,800 level, a key battleground for bulls and bears. This December’s event surpasses all prior records, with zero-day-to-expiration (0DTE) options on the S&P 500 alone accounting for more than 62% of total option activity, highlighting the complexity and potential volatility of the session. Massive expirations could amplify swings. But a “pinning effect” may also stabilize prices toward key strike levels at close. Although the market rebound tonight, it’s far away from Santa rally. Can S&P 500 close above 6800? Do you expect the “pinning effect” or market swings to dominate? Leave your comments to win tiger coins~
The Biggest “Quadruple Witching” Coming! Can S&P 500 Hold 6,800?

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