Dec 16 is the Quad Witching Day.
The term “quadruple witching day” refers to the Friday in the third week of each quarter (March, June, September, and December) when all financial derivatives in the US stock market expire and are settled and delivered.
Stock index futures, stock index options, individual stock futures, and individual stock options all expire at the same time during the Four Witches. The last trading hour of the day is known as the Quadruple Witching Hour, which occurs between 3 and 4 p.m. New York time. Volumes increase dramatically during the expiry period, as does market volatility.
During the “Quad Witches” final trading session, investors rushed to close their positions, resulting in a significant increase in trading volume. As a result, the “Quadruple Witching” is usually accompanied by significant price fluctuations in stocks and derivatives.
The Malaysian stock market will usually fluctuate on the day of Quadruple Witching, especially when the market reopens at 4:50 pm, with blue chips or various large-cap stocks having high trading volumes. Don’t be surprised if there is a sharp rise or fall near the end. If you own blue chips on the Bursa Malaysia, you might want to consider “speculating” during this time.
This year’s witching days are March 18, June 17, September 16, and December 16. The quad Witching Day of the year is December 16th.
