🧨 I was Hit by ⚡️⚡️⚡️⚡️ Quadruple Witch 🧙‍♀️. Now be careful‼️

1️⃣6️⃣-1️⃣2️⃣-2️⃣0️⃣2️⃣2️⃣ Friday was Quadruple 🧙‍♀️ witching day and the 🇺🇸 U.S. [USD]  stock market  was hit hard. Stocks dropped for a third straight session and suffered a second straight week of losses. Fears continued to mount that the Federal Reserve's campaign to arrest inflation would tilt the economy into a recession. 

⚡️🧙‍♀️ What is Quadruple Witching Day❓

It is a day when Options on stocks, stock indices, futures and futures options all expire together. QW happens four times a year during the Options expiration week. The option expiration week is when theoptions expire and this happens on the third Friday every month. 

⚡️🧙‍♀️ High volume and 📈📉 volatile day 

The expiration of all these contracts creates volatility and high volume (than normal day) due to repositioning. Options and futures are frequently used for hedging positions, and traders are forced to "roll over" contracts. Moreover, market makers are forced to cover positions, and arbitrageurs come in to balance any mispricings.

The notional amount of options expiring on 16 December 2022 alone is a massive U.S. $4 trillion. December expiration is also commonly considered the last day of liquidity for the year and volume tend to subside heading into the last couple weeks of the year. 

⚡️🧙‍♀️ 🐻🐻 Bearish day

The $DJIA(.DJI)$ plummeted more than 500 points during the days trade and finally settled at loss of -0.85%. DJIA was 32,920.46 point when market closed. $S&P 500(.SPX)$ also dropped big for more than -1.11% and closed at 3852.36 pointsThe $NASDAQ(.IXIC)$  first slipped more than a percentage point then settled at loss of -0.97% at 10,705.41 points. 

$Tesla Motors(TSLA)$ closed at USD$250.23. Time to buy?

$Intel(INTC)$ closed the week at USD$26.92. 

⚡️🧙‍♀️ Next Quadruple witching days❓

Historically the week after options expirations and the quadruple witching day has lower average returns than any random week. So keep a close watch at today's market for any chance to DCA  

I have enclosed here the dates of next year's four quadruple witching days for us 🐯🐯🐯 to take note.

Trade with care in this volatile market.

Do DYODD. Stay safe. Good luck. 🍀 

🍀🍀🍀🍀🍀🍀🍀🍀🍀🍀🍀🍀🍀🍀🍀

This is for information. This is not investment advice. 

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