EXCLUSIVE: Options Expert Warns Of 'Terrible Week' After Friday's Triple Witching
Portfolio Pulse from Piero Cingari
The article discusses the potential market volatility following September's triple witching, where significant options contracts expire, potentially leading to unusual market activity. Historical data suggests a challenging week ahead for traders, with the S&P 500 often experiencing declines post-witching. The Volatility Index (VIX) is currently low, presenting a potential opportunity for options traders. Goldman Sachs recommends hedging with VIX calls. The article also lists top gainers and laggards in the S&P 500 after Friday's market open.
September 20, 2024 | 2:51 pm
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POSITIVE IMPACT
Constellation Energy Corp. (CEG) was one of the top gainers after Friday's market open, with a significant increase of 13.34%.
CEG's notable gain positions it as a potential short-term positive performer, though not directly related to the triple witching event.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
The Volatility Index (VIX) is currently low, presenting a potential opportunity for options traders. Goldman Sachs recommends buying VIX calls to hedge against potential market volatility.
The article notes the VIX is below its long-term average, and Goldman Sachs recommends VIX calls, indicating potential for increased volatility.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
FedEx Corporation (FDX) was the top laggard after Friday's market open, experiencing a significant decline of 14.68%.
FDX's significant decline positions it as a potential short-term negative performer, though not directly related to the triple witching event.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) may experience increased volatility and potential declines following the triple witching event, as historical data shows the S&P 500 often falls post-witching.
The article highlights the historical trend of the S&P 500 declining after triple witching events, suggesting potential short-term negative impact on SPY.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90