Triple Witching
The quarterly expiration of stock index futures, stock index options, and individual stock options simultaneously on the third Friday of March, June, September, and December.
Triple witching occurs on the third Friday of March, June, September, and December — when three classes of derivatives expire simultaneously: stock index futures, stock index options, and individual single-stock options. The simultaneous expiry creates a surge in volume as institutional traders roll, close, and rebalance large positions.
The opening auction on triple witching Fridays can be unusually volatile as the Special Opening Quotation (SOQ) used for cash settlement is determined. Arbitrage desks execute "program trades" to lock in cash-futures spreads, generating large order flow in underlying equities.
Total volume on triple witching days often exceeds normal days by 50–100%. Active futures traders treat the day with extra caution — gaps, reversals, and unusual intraday swings are common.
Related Terms
Cash Settlement
A settlement method where no physical asset changes hands at expiration — the contract settles to a final index or reference price in cash.
BeginnerES (E-mini S&P 500)
The world's most liquid equity index futures contract — tracks the S&P 500, $50 per point, expires quarterly.
BeginnerExpiration
The date on which a futures contract reaches the end of its life and is either cash-settled or triggers physical delivery.
BeginnerQuadruple Witching
Like triple witching but adds the expiration of single-stock futures — the four simultaneous derivative expirations on quarterly expiry Fridays.
Intermediate