December 20th is Quadruple Witching Day.
Quadruple Witching Day refers to the third Friday in each quarter (March, June, September, and December), when all financial derivatives in the USA stock market expire and undergo a settlement and delivery.
During Quadruple Witching Day, Equity Index futures, Equity Index Options, individual stock futures, and individual stock options all expire simultaneously. The last trading hour of the day is the Quadruple Witching Hour, from three to four o'clock in the afternoon New York time. During the expiry period, trading volume sharply increases, leading to intensified market volatility.
During the final trading hours of Quadruple Witching Day, investors are eager to close positions, causing a significant increase in trading volume. Therefore, Quadruple Witching Day is usually accompanied by large fluctuations in stock and derivatives prices.
Usually on Quadruple Witching Day, there will also be volatility in the Malaysian market, especially at 4:50 pm when trading resumes. Blue-chip stocks or large-cap stocks may experience significant trading volume.
On December 20, the Malaysian stock market may also experience large transactions at the last minute. If you hold Blue Chip stocks in the Malaysian market, you may consider "speculating" during this period.
Fak Gao You : Serious!