Quadruple Witching, also known as "the witching hour", refers to the simultaneous expiration of stock index futures, stock index options, stock options, and single stock futures derivatives contracts four times a year. This typically occurs on the third Friday of March, June, September, and December.During quadruple witching hours, market participants can experience higher than normal levels of volatility as they adjust their portfolios to reflect the new contract prices. This can create opportunities for traders who are able to take advantage of the price movements. However, it can also lead to increased risk-taking and speculative activity that can result in losses for some investors.Overall, quadruple witching is an important event in the financial markets that can impact both individual investors and institutions alike. While it may create some challenges during periods of high volatility, it also provides opportunities for those who are able to navigate the market conditions effectively.
