Heads up next week Friday is monthly OpEx and quad witching

Heads up that next week Friday is the third Friday of the month and last month of the quarter, which means it’s monthly OpEx quad witching (not related to quads or witches though).

Quad witching is when stock index futures, stock index options, stock options, and single stock futures all expire simultaneously.

These events tend to be important because they can lead to heightened volatility due to the large number of expiries. The roll over and possible rebalancing of positions can lead to big jumps in volume which can create significant price moves, but also big price distortions as well.

Below is a handy 2024 options calendar from the Cboe.

This article was written by Arno V Venter at www.forexlive.com.