What Is a Triple Witching Day?

San Wu Ri means that the stock index futures contract, stock index options and individual stock options expire at the same time. This situation occurs every quarter, and often makes the stock market volatility significantly increase, especially the US stock market. The United States' three rights expire on the third Friday in March, June, September and December. Similar to the expiry of the three contracts is the expiry of the dual contract, that is, two of the above three contracts expire simultaneously.

Three Witches Day

Right!

San Wu Ri means that the stock index futures contract, stock index options and individual stock options expire at the same time. This situation occurs every quarter, and often makes the stock market volatility significantly increase, especially the US stock market. The United States' three rights expire on the third Friday in March, June, September and December. Similar to the expiry of the three contracts is the expiry of the dual contract, that is, two of the above three contracts expire simultaneously.

Comparison of Three Witch Days and Four Witch Days

The Fourth Witch Day refers to the maturity settlement date of derivative financial commodities in the US market on the third Friday of the quarter month (March, June, September, December). It is expected that commodity prices will fluctuate greatly. The last trading hour of the day is called the Four Witch Hours, which is from 3 pm to 4 pm New York time.

There are four types of commodities that are due for settlement, so they are called the Four Witch Days: stock index futures, stock index options, individual stock futures, and individual stock options.

Since November 8, 2002, the US market only began trading individual stock futures, so it was previously known as the Three Witch Days.

This phenomenon is sometimes called "weird Friday". The last period of the third Friday at the end of each season is called the Three Witches Meeting. During this hour, as traders quickly close the audience's options and futures contracts before the contract expires, the market's volatility will also increase. If it is a long-term investor, the effect of this phenomenon is minimal. ^[1]