Triple Witching - What to Invest?

🌟🌟🌟June 20 2025 isn't just another Friday.  It is Triple Witching Day and this one is supercharged!  With USD 6.5 Trillion in Options and Futures contracts expiring, it is the largest on record, making it a perfect storm of liquidity, leverage and last minute positioning.

Here is a deep dive into what is in play :

1. Volatility Linked ETFs

With VIX back above 20 due to geopolitical tensions and compressed trading time after Juneteenth Holiday, Volatility ETFs like VIXY, UVXY are seeing renewed interest.  These are great tools for traders looking to hedge or speculate on short term market swings. 

2.  Mega Cap Tech and Index ETFs 

Despite the chaos, SPY $SPDR S&P 500 ETF Trust(SPY)$  and QQQ $Invesco QQQ(QQQ)$  remain anchors.  With the Feds holding interest rates steady, large cap tech especially the Magnificent 7 continue to attract capital. 

Top Picks from the Magnificent 7 for Triple Witching Day

Microsoft $Microsoft(MSFT)$  recently reached its all time high.  With Feds holding rates steady, Microsoft's AI driven cloud growth (Azure and Copilot) continues to do well.

Nvidia $NVIDIA(NVDA)$  is still the undisputed AI hardware leader.  Recent pullbacks due to profit taking may offer a Buy the Dip opportunity.

Amazon $Amazon.com(AMZN)$  ECommerce and AWS are both rebounding.  There is upside potential due to consumer resilience and cloud optimisation.

Caution Flags

Tesla $Tesla Motors(TSLA)$  is still volatile with mixed sentiments around EV demand and margins.  Options activity is heavy but direction is unclear.

3.  Dividend and Defensive Plays 

With rates unchanged for 4 months, dividend focused ETFs like Schwab US Dividend Equity ETF (SCHD) and Vanguard High Dividend Yield ETF (VYM) are popular.    These offer dividend stability in a market that is jittery but not collapsing.

Concluding Thoughts 

The Triple Witching Day is a cocktail of compressed time, record options expirations and geopolitical tension.

If you are a long term investor on Triple Witching Day - Stay the course as Triple Witching rarely alters fundamentals.

If you are a short term trader, expect heightened volatility and liquidity distortions especially near the close. Consider tight stop losses or hedging with options. 

So whether you are hedging, harvesting gains or hunting for value - Triple Witching Day on June 20 is your moment to act, not overreact.

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