Quad-Witching Day Hit The Market Last Friday, Which Only Happens 4 Times A Year: What's The Impact?
Portfolio Pulse from Aaron Bry
Quad-witching day, which increases market volatility by having stock options, single-stock futures, index futures, and index futures options derivatives all expire on the same day, occurred last Friday. CC Lagator of OptionsAI noted this event felt different due to the market's sideways movement in March, despite overall volatility. The SPDR S&P 500 Trust ETF (SPY) experienced a 2% increase in March but showed significant day-to-day and intraday volatility, including a notable rally last Thursday and a drop during last Friday's quad-witching.
March 18, 2024 | 7:28 pm
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NEUTRAL IMPACT
The SPDR S&P 500 Trust ETF (SPY) saw a 2% increase in March but experienced significant volatility, including a notable intraday rally and a drop during last Friday's quad-witching.
Quad-witching typically increases market volatility, which can lead to unpredictable short-term movements in ETFs like SPY. The specific mention of SPY's performance in March, including its volatility and the impact of quad-witching, suggests a neutral short-term impact as the market has already absorbed these events.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100