What Is Quadruple Witching?
Quadruple witching (also called 'quad witching') refers to the third Friday of every March, June, September and December. On these days, derivatives (e.g. market index futures, options futures, stock options, stock futures) expire, usually resulting in increased volatility.
How Does Quadruple Witching Work?
Although futures and options generally expire on the third Friday of every month, quadruple witching only occurs four times per year.
On quadruple witching days – and especially during quadruple witching hours – it’s common for investors to try and unwind their futures and options positions before the contracts expire. This often includes repurchasing contracts and closing out position market capitalizations.
What Is a Quadruple Witching Hour?
The last hour of these trading days (between 3:00 to 4:00 p.m. EST) is referred to as the quadruple witching hour.
When Are Quadruple Witching Dates?
The following witching dates apply to 2020, 2021, and 2022:
Quadruple Witching Dates 2020
March 20, 2020
June 19, 2020
September 18, 2020
December 18, 2020
Quadruple Witching Dates 2021
March 19, 2021
June 18, 2021
September 17, 2021
December 17, 2021
Quadruple Witching Dates 2022
March 18, 2022
June 17, 2022
September 16, 2022
December 16, 2022
Why Is Quadruple Witching Important?
Quadruple witching days are usually accompanied by considerable stock and derivative price volatility, as well as increased trading volume. As a result, investors can anticipate and plan for the potential effects of these relatively turbulent trading days.
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