Quadruple Witching
The day when four types of derivatives, including stock index futures and options, all expire at once (once a quarter) — trading volume surges and volatility rises.
Quadruple Witching = stock index futures, stock index options, single stock futures, and single stock options all expiring on the same day
Volatility and volume tend to rise around the expiry date, especially right before the close.
In plain terms
Quadruple witching day is the day when four kinds of derivatives (index futures, index options, single-stock futures, single-stock options) all expire at once. It comes four times a year, once each quarter. The name comes from the eerie image of four witches showing up at the same time.
Ahead of expiry, investors close out and roll over positions, so trading volume surges, and prices tend to swing more than usual, especially near the closing bell.
What it tells you
Quadruple witching day shows that "a stock price can be moved by derivatives flows rather than by the company's value." It's the day when the "tail wagging the dog" effect we saw earlier is concentrated.
So a sharp move on this day often isn't because something happened at the company — it's temporary supply and demand tied to expiry.
Formula
Quadruple Witching = stock index futures, stock index options, single stock futures, and single stock options all expiring on the same day (the third Friday of March, June, September, and December)
What high or low means
Volatility and volume tend to rise around the expiry date, especially right before the close. The direction (up or down), however, isn't set.
The swings on this day are usually temporary, so prices often return to their earlier trend on the next trading day.
A sharp move on quadruple witching day is a different story from the market's direction. It's just temporary flow created by derivatives expiry, not a change in fundamentals.
Trying to trade these swings short-term is very difficult and risky. Even professionals find expiry-day moves hard to predict.
Metrics to read alongside
See it in real stocks
Search US stocks on Stocklore to see SEC-filing-based financial metrics alongside the sector benchmark.
This explanation is for information and reference only and is not a recommendation to buy or sell any security. Investment decisions and their consequences are your own.