Triple Witching Event This Friday Could Lead to Market Volatility

Triple witching options event on Friday has historically caused stock market turbulence
$4 trillion in derivatives contracts expiring could spur volatility and index rebalancing
September triple witching weeks have seen S&P 500 falls 79% of time historically
Traders watch dealers who buy/sell stocks to hedge options, shifting "gamma" exposure
Investors optimistic on equities, may allocate more money in Q4 rally after cash buildup

yahoo.com

Relevant topic timeline:

8/25/2023

'This is a no-rules market'. Goldman strategist explains why recent stock moves have confounded traders.

Systematic option traders and funds have significant control over the US stock market, reducing the impact of fundamental news, such as Nvidia's earnings report, and contributing to increased market volatility.

9/15/2023

Record $3.4 Trillion in Stock Options Expiring Friday Could Mean Volatility for Stocks and Bitcoin

Stock options worth $3.4 trillion are set to expire on Friday, potentially leading to increased volatility and price declines in both the S&P 500 and Bitcoin, with September historically being a negative month for these assets. There is also a possibility of a surprise interest rate hike by the Federal Reserve, which could impact risk assets.

9/18/2023

Arm Share Price Falls on High Volume of Puts Trading After IPO

Options on SoftBank's Arm Holdings saw brisk trading as a drop in the share price led investors to take precautions, with volume projected to reach 63,000 contracts by the end of the day.

9/27/2023

Pre-Market Trading Anomalies in S&P 500 Generate Billions in Options Profits

Unusual trading activity in the S&P 500 outside regular market hours is influencing the fate of trillions of dollars' worth of stock options tied to the benchmark US gauge, leading to significant profits for bullish investors and raising concerns about manipulation or hedging strategies.

10/1/2023

Investors Remain Calm Amid Market Slump, But Signs of Rising Stress Emerge as Volatility Stays Elevated

Investors are showing signs of stress as big down days become more frequent and rebounds are scarce, with options traders warning against getting too comfortable amidst the risks of a narrowly-averted US government shutdown, rising Treasury yields, concerns about Federal Reserve action on inflation, and an auto-worker strike.

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Posted 9/14/2023, 8:18:12 PM