Pump or Dump? Bargain Hunt or Choose Options on Quad Witching Day?

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03-13
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The first Quadruple witching day of 2024 is on its way - this Friday!

On this day, 4 kinds of derivatives will expire. Heavy trading volume makes the market highly volatile compared to normal days. 

Quadruple witching may provide arbitrage opportunity to profit on temporary price distortions.

What happened when large numbers of options expired?

  • On February 16th, $SUPER MICRO COMPUTER INC(SMCI)$ experienced a significant surge in buying pressure due to a gamma squeeze fueled by the high volume of options expiring on that day. This surge led to a rapid increase in share prices.

What can you do to profit from the volatility?

  • Bargain hunt stocks!

On 16th Feb., $SUPER MICRO COMPUTER INC(SMCI)$ SMCI experienced a price fluctuation of 26%.

  • 0DTE options!

 Zero-day expiration (0DTE) options, also known as same-day expiration options, are options contracts that expire on the same day they are traded.  

This concept has been expanded: options expiring that week can also be counted as 0DTE.

How do you prepare for roller coaster ride?

Which stock will experience gamma squeeze on the day?

Leave your comments and also post to win tiger coins~

Every valid comment will get at least 5 tiger coins!

The hot and insightful comment will even get hundreds of tiger coins!

Quad Witching Coming! Pick 0DTE Options?
The first Quadruple witching day of 2024 is on its way - this Friday! On this day, 4 kinds of derivatives will expire. Heavy trading volume makes the market highly volatile compared to normal days. Zero-day expiration (0DTE) options, also known as same-day expiration options, are options contracts that expire on the same day they are traded. This concept has been expanded: options expiring that week can also be counted as 0DTE. ---------------- Would you choose 0DTE options as Quad witching day is around the corner?
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.
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Comments

  • Shyon
    03-13
    Shyon

    Pump or Dump? No correct no wrong! [Doubt]  [Doubt]  [Doubt]  

    Quadruple witching does not have a quantifiable bullish or bearish bias. Instead, the event is largely a function of speculation and investor sentiment. When quadruple witching occurs, traders should expect increased volatility and manage their positions accordingly. The resulting market swings could be bullish or bearish depending on how investors interpret the situation. [Chuckle]  [Chuckle]  [Chuckle]  

    Traders who expect a sharp rise in volatility during quadruple witching may decide to buy options, anticipating that prices will rise due to increased extrinsic value. Long options strategies such as long straddles and long strangles have no directional bias, and may profit form a large move either direction. Conversely, investors anticipating a decrease in volatility after the event may opt for short straddle or short strangle positions to capitalize on IV crush.

    It is important to note that predicting price movements during quadruple witching can be difficult because of its unpredictable nature. Ultimately, whether you should enter a long or short position depends on your outlook for the markets and how you expect them to react when faced with high levels of options expirations. [Blush]  [Blush]  [Blush]  [Silence]  [Silence]  [Silence]  

    @GoodLife99  @Fenger1188  @b1uesky  @icycrystal  @Universe宇宙  @koolgal  @rL  @TigerStars  @CaptainTiger  @MillionaireTiger  @Tiger_comments  @TigerClub  

  • icycrystal
    03-13
    icycrystal

    it's that time of the year - first Quadruple witching day of 2024 this Friday!

    Quadruple witching could provide arbitrage opportunity to profit on temporary price distortions.

    time to Bargain hunt stocks! [Grin] [Grin] [Grin]

    @Shyon @Aqa @GoodLife99 @LMSunshine @koolgal @Universe宇宙 @rL @HelenJanet

    How do you prepare for roller coaster ride?


    Which stock will experience gamma squeeze on the day?


    Leave your comments and also post to win tiger coins~


    Every valid comment will get at least 5 tiger coins!


    The hot and insightful comment will even get hundreds of tiger coins!

  • antiti
    03-13
    antiti
    $NVDA Friday is quad witching. They won’t let $900 calls print. Every other fud story. Watch it go straight up through $1,000 by Friday on the way to $1,200 next week.
  • MHh
    03-13
    MHh
    Expecting big swings but it doesn’t change the strategy at all for those who are investors. Will still be a buy when or only if the price is right. However, if there is a squeeze pushing up prices, then it will be just a drama night to watch for those happy to just hold their positions. Of course, can consider selling a portion or all of one’s holdings to take profit and to buy them back at a later time when the price is right. For traders, it will be a busy night.


    Not an expert on derivatives and options. But I guess the same principles hold. May want to exit earlier if the volatility is beyond’s one risk appetite.


    As with all, buying and selling decisions are both a science and an art. Stay calm and trade wisely.
  • Josiah NZ
    03-14
    Josiah NZ
    Buying options exciting the same day is only for investors with very high risk tolerances, who really understand a specific industry. High risk means (potentially) high returns though. this is what's called the risk premium.
  • Aqa
    03-13
    Aqa
    Let’s go Bargain Hunting for well established stocks at lower prices with the first Quadruple Witching Day of 2024 this Friday! We can also do Options, depending on our individual investing style. If the stock price moves up or down significantly, doing Options offers much better profits than owning rhe stock. Maybe $SUPER MICRO COMPUTER INC(SMCI)$ will experience a gamma squeeze again.
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