𧨠I was Hit by β‘οΈβ‘οΈβ‘οΈβ‘οΈ Quadruple Witch π§ββοΈ. Now be carefulβΌοΈ
1οΈβ£6οΈβ£-1οΈβ£2οΈβ£-2οΈβ£0οΈβ£2οΈβ£2οΈβ£ Friday was Quadruple π§ββοΈ witching day and the πΊπΈ 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.
β‘οΈπ§ββοΈ What is Quadruple Witching Dayβ
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.
β‘οΈπ§ββοΈ High volume and ππ 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.
β‘οΈπ§ββοΈ π»π» Bearish day
The $DJIA(.DJI)$
$Tesla Motors(TSLA)$
$Intel(INTC)$
β‘οΈπ§ββοΈ Next Quadruple witching daysβ
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 π―π―π― to take note.
Trade with care in this volatile market.
Do DYODD. Stay safe. Good luck. π
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This is for information. This is not investment advice.
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@TigerStars @MillionaireTiger @Tiger_chat
Modify on 2022-12-20 01:11
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Look into these Q witching day!!
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