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leistb
12-13-2008, 01:16 AM
Quadruple Witching
What It Is:
Quadruple witching refers to when market index futures, market index options, stock options, and stock futures all expire on the same day.

Quadruple witching is similar to triple witching, which only includes the expirations of index futures, index options, and stock options.

How It Works/Example:
Although index futures and options generally share simultaneous expirations on the third Friday of every month, quadruple witching days only occur on the third Friday of every March, June, September, and December. The last hour of these trading days, from 3:00 to 4:00 p.m. EST, is referred to as the quadruple witching hour.

On quadruple witching days, and especially during quadruple witching hours, many investors attempt to unwind their positions in their futures and options contracts before the contracts expire. This activity frequently includes repurchasing contracts and closing out other positions meant to hedge against these contracts.

Why It Matters:
Quadruple witching days are usually accompanied by considerable volatility in stock and derivative prices, as well as increased trading volume. As a result, investors can anticipate and plan for the potential effects of these relatively turbulent trading days.

http://www.streetauthority.com/terms/q/quadruple-witching.asp

Ross
12-13-2008, 07:04 AM
I would expect the plunge protection team to be just gushing with
Christmas liquidity and presents for stock holders .

( Jezz thats a frightening thought , members of the PPT drunk and
spending your money . ) :D

BirdGuano
12-14-2008, 11:58 AM
( Jezz thats a frightening thought , members of the PPT drunk and spending your money . ) :D

And this differs from a NORMAL day when Congress is in session...how ?
:D

DReynolds
12-14-2008, 12:07 PM
I would expect the plunge protection team to be just gushing with
Christmas liquidity and presents for stock holders .

( Jezz thats a frightening thought , members of the PPT drunk and
spending your money . ) :D

The term "plunge protection team" is very unfortunate slang for the President's Working Group on Financial Markets, started by Reagan, and they DO NOT BUY STOCKS to prevent crashes. They STUDY FINANCIAL MARKETS and consider policy changes (such as the uptick rule for shorting).

There is no such thing as a PPT that "spends money". It's an urban legend like susquatch.