Quadruple witching day refers to the Friday of the third week of each quarter (March, June, September and December). All financial derivatives in the U.S. stock market will expire at this time. And do a settlement and delivery.
On a Four Witching Day, stock index futures, stock index options, individual stock futures, and individual stock options expire at the same time. The last trading hour of the day is the Quadruple Witching Hour, which is between 3 and 4 pm New York time. During the expiration period, trading volume increases sharply and market volatility intensifies.
During the final trading session of the “Four Witching Days”, investors rushed to close their positions, resulting in a significant increase in trading volume. As a result, “Four Witching Days” are often accompanied by large swings in stock and derivatives prices.
Usually on the day of the Four Witching Day, the Malaysian stock market will also be volatile, especially when the market reopens at 4:50 pm, there may be huge trading volumes in blue chip stocks or various large-cap stocks. Previously, on March 17 and June 15, the Malaysian stock market also suddenly experienced sharp trading at the end of the day. If you own blue-chip stocks in the Malaysian stock market, maybe you can consider “speculating” during this period.
This year’s four Four Witching Days fall on March 17, June 16, September 15 and December 15 respectively.
