๐ Triple Witching Tomorrow โ What It Means for the Markets and My Portfolio ๐
Tomorrow, September 20, 2024, is Triple Witching Dayโa day when stock index futures, stock index options, and stock options all expire simultaneously. Hereโs what to expect and how it might affect the markets: ![]()
๐ Increased Volatility: Triple Witching Days are known for sharp increases in trading volume and volatility. This happens as traders and institutions rush to close or roll over their expiring positions. We could see price swings, especially in the final hour of trading, so itโs important to stay alert if youโre managing options or looking for trading opportunities. ![]()
๐ Temporary Price Movements: With all these expirations happening at once, thereโs often a chance for temporary price inefficiencies, which savvy traders might use for arbitrage. However, it also means I could see some erratic moves in stocks like Nvidia, Apple, Tesla, and others in my portfolio. $NVIDIA (NVDA.US)$ $Tesla (TSLA.US)$ $Apple (AAPL.US)$ $Alphabet-A (GOOGL.US)$ .
Disclaimer: Investment involves risks and the potential to lose principal. It is not suitable for everyone, and users will have to make their own individual investments decisions.
๐จ Managing Risk: If you have options expiring, nowโs the time to review and adjust. Rolling or closing positions before the market close can help avoid the rush and possible slippage in prices.
Seller Report: Options Screener Tool. A handy and efficient method for picking options. ![]()
Options screener helps to give you a quick snapshot of Premium VS ROI
Change the filter setting by increasinng option expiry date for a refined search on better Premiums with greater ROIs ![]()
Historically, Triple Witching doesnโt significantly alter long-term trends, but it can create short-term chaos in the markets. So buckle upโit could be a bumpy ride tomorrow! ๐ข
Do support Casual Investor Channel will add more episodes soon. ![]()
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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103775419 : usually does market go up or down during triple witching? i understand when it expires a lot of people will sell and escape risk. but will it rise instead? or will there always be a fall?
CasualInvestor OP 103775419 : Historically, Triple Witching Days can lead to significant market volatility and a surge in trading volume as stock index futures, stock index options, and stock options all expire simultaneously. This usually happens on the third Friday of March, June, September, and December.
Market Performance During Triple Witching:
1. Volatility: The day is known for heightened volatility as traders close or roll over their expiring positions, which can lead to price swings, particularly in the last hour of trading, called the โwitching hour.โ
2. Mixed Market Trends: While trading volume spikes, the direction of the market is less predictable. Historically, the S&P 500 has tended to decline during triple witching weeks, averaging a loss of around 0.69% in recent years. Since 2021, the performance has been even weaker, with markets positive less than 30% of the time during these weeks.
Although volatility is expected, itโs important to focus on your strategy and avoid making decisions solely based on the fluctuations of the day. Itโs common for the market to stabilize after the expiration chaos settles.
103775419 CasualInvestor OP : thank you! but you mentioned "dont blindly rush in in your post", in this case, do you think its a good time to buy in when theres a "dip" or just monitor the market until monday? or like is there a way to predict if market will be bullish or bearish? for example looking at the candles?
CasualInvestor OP 103775419 : Short answer, sh*t happens or can happen.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
. ![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
1. Stay true to your trending fundamentals.
2. Read the 5 Dos and donโt shared.
3. Set stop loss to protect your portfolio.
4. Plan your trades especially an exit strategy and to profit take. Donโt get too greedy.
Donโt go out like a firework
103775419 : ok i got it![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
thank you!!
103775419 CasualInvestor OP : followed!
่ก่ๅฑฑ :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Andrea Connally 103775419 : It can do whatever the hell it wants to do. Thatโs the only predictable thing about the market