“Triple witching” is an event that occurs when stock index futures, stock index options and individual stock options contracts all expire on the same day. This phenomenon is also referred to in Wall Street as "freaky Friday".
In the final “witching hour” for that Friday, the markets are very volatile as traders and investors quickly offset their trading positions before the closing bell. These simultaneous offsetting of orders would likely result to a trading catasptrophe for some day traders and short-term investors. And those who will be hit by the "potion" are like being cast into a terrible "market spell" for that particular trading day.
However, triple witching does not, and will never, occur on November 1. Although, it happens four times a year; but, only on the third Friday of March, June, September and December.
Happy halloween, nonetheless.
BOOO!!!
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