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Market On Open
Options expiry is upon us Friday, and it's a big one. Four times per year, around each quarter end, we hit triple witching (which used to be quadruple witching but there is less witchitiness since US single-stock futures ceased trading in 2020). On triple witching dates, index futures, index options, and single-stock options all hit expiry.
Here's the CBOE's 2023 calendar (you can open a full-page version, here).
We walk through why options expiry can be a big deal in this video:
In short though: plan for volatility around opex dates, particularly the triple-witching opex dates. What the market does in the day before and the days afterwards may be dominated by the impact of those hedges being unwound, and may not be the 'true' direction of the market that follows.
Now, for our paying members only we walk you through our longer-term take on the S&P500, the Nasdaq-100, the Dow Jones and the Russell 2000, Bitcoin and Ether.
If you've yet to join this Cestrian Market Insight service as a paying member, you can do so right from the button below. We hope to see you on the other side soon!