Investors should also watch this Friday’s first Triple Witching Day of 2025.
What's Triple Witching Day? Triple witching refers to the simultaneous expiration of 3 types of derivatives on the same day, including index futures, index options and stock options. This event occurs on the third Friday of March, June, September, and December each year, making it a significant date for traders and investors in the financial markets. During this time, traders may rush to close or roll over their positions, leading to sharp price movements and heightened volatility. This phenomenon can result in substantial trading volume, as market participants adjust their strategies in response to the expirations
3 Major Indices Weekly Performance during March Triple Witching 1994-2024
Historical data shows that the major U.S. indices have over a 60% chance of gains during the March Triple Witching week! Over the past 31 years,
– The $S&P 500(.SPX)$ rose 21 times, with the highest probability of increase at 68%, a maximum gain of 7.5%, and a median return of +1%.
– The $Dow Jones(.DJI)$ increased 20 times, with a maximum gain of 8.43% and a median return of +0.81%.
– The $NASDAQ(.IXIC)$ went up 19 times, with a maximum gain of 8.18% and a median return of +0.74%.
However, due to the impact of COVID-19, the March Triple Witching week in 2020 saw the three major indices suffer their largest declines, each dropping over 12% in a single week.
After a month of sluggish market performance, will this week see a rebound and rebuild market confidence? Let’s take a look at the latest options analysis for some trending stocks.
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