very unlikely. all those multiple multiple witching will not create volatility. Yesterday US market was rather tame. so most likely today it will be equally tame unless there is some major new/events like a powerful Presidential twitt.
Nice Call, the strength in the Morning felt weak, not sure where its heading so I am kicking back waiting after selling some Apple Puts.
I bought at $1.40, sold $3.20 I posted on Journal and than they go to $5! I got lucky, hate luck vs good conviction and planning. How did you fair? Market Morning Gap felt too forced!
Nothing to see here, move along. Oh wait it actually was a little crazee yesterday. Quadruple Witching Hits Stock Market, Sparking Bursts of Trading (Bloomberg) By Lu Wang June 18, 2020, 5:10 PM EDT Updated on June 19, 2020, 5:13 PM EDT June’s trading volume poised for the second-highest on record If history is any guide, market may head lower after the event Traders struggling to keep up with gyrations in U.S. stocks just got jolted by a surge of trading volume and wild price swings. Transactions in stocks spiked amid a quarterly event known as quadruple witching, when options and futures on indexes and equities expire. More than 16 billion shares changed hands, 30% above the average in the past three months, while the S&P 500 reversed earlier gains to close the session lower amid renewed concern over coronavirus reinfections. Quadruple witching usually coincides with a rebalancing of major indexes such as the S&P 500 and can spark some of the busiest trading days of the year. While the global market turmoil in March prompted S&P Dow Jones Indices to postpone the last rebalancing, the quadruple witching alone was enough to trigger a volume surge. This time, the need to adjust stock positions appeared to be higher than usual. About $1.8 trillion of S&P 500 options were scheduled to expire, making it the third-largest non-December expiration on record, data compiled by Goldman Sachs Group Inc. showed. The index rebalancing could force $48 billion of trades, up from $30 billion six months ago, S&P Dow Jones estimated. While spikes in volume usually occur around the open and close, providing windows of robust liquidity, large price swings can happen suddenly at any time of the day. “When we see the run-up like we’ve seen and you have investors trying to protect their portfolios, protect the gains and having the uncertainty still out there, you’ve got some big options positions in the markets right now and the decisions to roll them or not on that day is what drives the volatility,” said Chris Gaffney, president of world markets at TIAA Bank. After a relentless run that drove the S&P 500’s gain from its March trough to over 40%, the market has settled in a new range where traders have been whipsawed by hopes for a sharp economic recovery and fears over a second wave of coronavirus infections. Stocks last week posted their worst decline since the depths of the bear market, only to see the S&P 500 ending this week higher. The turbulence came with higher trading volume. Halfway into June, more than 13 billion shares have changed hands each day on average, on course for the second-busiest month since at least 2008. Still, Friday’s pace of trading paled in comparison to March, when the quadruple-witching day saw volume topping 18 billion. That’s partly because a lot of options contracts were way out of money, reducing the need to roll them over and trade stocks accordingly in portfolios.