Triple witching hour refers to the simultaneous expiration of three different types of financial derivatives: stock options, stock index futures, and stock index options. This typically occurs on the last sixty minutes of the trading day on the third Friday of March, June, September, and December.
It’s called “witching hour” because of the potential for increased volatility and trading activity as traders close out or roll over their positions in these derivatives before they expire.
This phenomenon can sometimes lead to heightened market volatility as market participants adjust their portfolios.
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