$Cosmos Health (COSM.US)$gg direct offering
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Last "quadruple witching" day of 2021 in the U.S. market is coming ahead. It's expected to be the largest one in volume of this year, which has rattled many investors and traders.
The quadruple witching hour is the last hour of the trading session on the quadruple witching day when options and futures on indexes and equities expire, Friday.
What is quadruple witching?
Quadruple witching refers to four days when four different financial asset contracts expire in a calendar year.
The days are the third Friday of March, June, September and December. The assets on which the contracts expire on that day are stock options, single stock futures, stock index futures and stock index options. Options contracts also expire monthly. Futures contracts expire quarterly.
Why it matters
Because all four types of contracts expire on the same day, the quadruple witching day usually sees a heavier volume of trading, which will cause market chaos.
Part of the reason for the increase in market transaction volume is the automatic offsetting transactions. Volume on quadruple witching days has increased roughly two-thirds of the time since 2005.
Put it simply, on the negative side, history suggests that returns haven’t improved significantly. Volatility may bring gains or huge losses.
The positive impact on the market that day is that arbitrage trading brings profit opportunities. Active trading, that is, an increase in trading volume, may cause the market to rise.
The $S&P 500 Index (.SPX.US)$ dropped 0.06%, 1.31%, and 0.91% on Mar 19, June 18, and Sep 17respectively according to historical data of other three quadruple witching days this year.
How to Invest during quadruple witching day? To learn more about stock options and how to hedge the position through options, you might like this course:
Snapshot of the benefits and risks of options trading:
For more investment knowledge and trends, welcome to Courses in the Community.
$Dow Jones Industrial Average (.DJI.US)$ $Nasdaq Composite Index (.IXIC.US)$
The quadruple witching hour is the last hour of the trading session on the quadruple witching day when options and futures on indexes and equities expire, Friday.
What is quadruple witching?
Quadruple witching refers to four days when four different financial asset contracts expire in a calendar year.
The days are the third Friday of March, June, September and December. The assets on which the contracts expire on that day are stock options, single stock futures, stock index futures and stock index options. Options contracts also expire monthly. Futures contracts expire quarterly.
Why it matters
Because all four types of contracts expire on the same day, the quadruple witching day usually sees a heavier volume of trading, which will cause market chaos.
Part of the reason for the increase in market transaction volume is the automatic offsetting transactions. Volume on quadruple witching days has increased roughly two-thirds of the time since 2005.
Put it simply, on the negative side, history suggests that returns haven’t improved significantly. Volatility may bring gains or huge losses.
The positive impact on the market that day is that arbitrage trading brings profit opportunities. Active trading, that is, an increase in trading volume, may cause the market to rise.
The $S&P 500 Index (.SPX.US)$ dropped 0.06%, 1.31%, and 0.91% on Mar 19, June 18, and Sep 17respectively according to historical data of other three quadruple witching days this year.
How to Invest during quadruple witching day? To learn more about stock options and how to hedge the position through options, you might like this course:
Snapshot of the benefits and risks of options trading:
For more investment knowledge and trends, welcome to Courses in the Community.
$Dow Jones Industrial Average (.DJI.US)$ $Nasdaq Composite Index (.IXIC.US)$
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$Grab Holdings (GRAB.US)$ out of a sudden , everyone have a positive mindset in this ticker 😂
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$Grab Holdings (GRAB.US)$ It's Sunday today.. And we see people still shouting one word - short grab without any basis.. is life getting so stressed up that one has to keep posting the same thing over and over again during non trading hours? seems quite stressful for these people.. don't think they can sleep well at night.. It seems a bit pointless and wasting of time here.. I'm just gonna buy more every month and hold for a long term and just enjoy my life and sleep well everyday.. enjoy everyone..
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Usually trend is your friend and momentum brings you higher. for short term trading this would be one of my most important factor. But short term reversal is also a good way to enter if there is a market wide short term correction. Generally look out for medium term upward trend with short term pullback as a buy-the-dip opportunity.
On the contrary medium term downtrend like for Alibaba would mean that it is best to stay away.
Sentiment is also another good indicator. For current environment where FOMO and TINA dominates, you see that negative news dont impact DM big stocks much, while small positive news make it go higher.
On the contrary medium term downtrend like for Alibaba would mean that it is best to stay away.
Sentiment is also another good indicator. For current environment where FOMO and TINA dominates, you see that negative news dont impact DM big stocks much, while small positive news make it go higher.
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