The Witching Hour is the last hour of trading on the third Friday of each month when options and futures on stocks and stock indexes expire. This period is often characterized by heavy volumes as traders close out options and futures contracts before expiry. Positions are then often re-opened in contracts that expire at a later date.The witching hour can be a volatile time for markets, as large numbers of trades are executed in a short period of time. This can lead to price swings as market participants attempt to buy or sell assets before their positions expire. The witching hour can also provide opportunities for traders who are able to take advantage of the increased liquidity and volatility.
