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Quadruple Witching Friday, Expect The Unexpected

ByNicholas Santiago
Published 06/18/2013, 12:17 AM
Updated 07/09/2023, 06:31 AM

This Friday is going to be options expiration for the month of June. It is also a quadruple witching expiration which occurs four times a year on the third Friday of March, June, September and December. This is a time when stock index futures, stock index options, stock options and single stock futures will all expire.

It is safe to say this is a period when the major stock indexes could be very volatile. Traders and investors should expect lots of rumors to be announced out of the blue. Just yesterday, there was a rumor being reported that the Federal Reserve will begin to taper there current $85 billion a month QE-3 program.

This is also a time when many leading stocks will be part of a rumor. Do not be surprised if you hear or read about a ridiculous upgrade or downgrade in many of the popular stocks. This unusual activity happens every quarter before quadruple witching expiration.

Some of the leading stocks that are usually very volatile during options expiration week include First Solar Inc (FSLR), Green Mountain Coffee Roasters Inc (GMCR), Netflix Inc (NFLX), Priceline.com Inc (PCLN), and many others.

Be warned: this is a trading week when traders and investors should expect the unexpected into the closing bell on Friday.
SPY

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