If you’ve been around for a while you probably have -although you may not have all the information about them-, but if you have just started your journey into the investing world you should learn what ‘triple witching’ and ‘quadruple witching’ are, because these “witches” highly concern you as an investor.
Simply put,
A ‘triple witching’ day is a day when stock options, stock index options, and stock index futures all expire on the same day.
A ‘quadruple witching’ day is a day when stock options, stock index options, stock index futures, and single stock futures all expire on the same day.
These days occur on a quarterly basis and the media normally gives them a lot of attention, basically because the expiration of these investment products can, and most certainly will, produce higher unpredictability in the market.
This is why, if you are a short-term trader, you have to be on the ball about witching days, which happen on the third Friday of March, June, September, and December. We are sure you can clearly see how sudden changes in the market can affect your short-term investments.
On the contrary, if you are a long-term investor, both these days will not impact you in a significant way. However, you should be aware of them, because when they come- as we already pointed out- the market can get kind of wild, and if you are ready for some unpredictability, it is easy to remain calm.
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