Trading Defined
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Market StructureIntermediate

Triple Witching

Triple witching is the third Friday of March, June, September and December, when stock options, stock index futures and options on index futures all expire together. The overlapping expirations can bring heavy volume and unusual price swings near the close.

Four times a year, several big derivative markets expire on the same afternoon. Traders who hold those contracts must close, roll or settle them, and arbitrageurs unwind positions linked to the underlying stocks. The result is often a burst of volume and odd price moves known as triple witching. This entry explains when it happens, why it matters and how traders handle it.

Category
Market Structure
Reading time
3 min
Also called
Triple witching hour, Triple witching day, Quadruple witching
Updated

Triple witching in plain words

Triple witching is the last trading hour on the third Friday of March, June, September and December, when stock options, stock index futures and options on those futures expire together.1

Large trades by hedgers and arbitrageurs in futures, options and stocks can cause unusual activity and volatility.1

Standard monthly stock options are tied to the third Friday, with expiration generally on the following Saturday.2

What happens on triple witching, step by step

  1. Check the calendar

    Third Friday of each quarter-end month. See Expiration Date.

  2. Contracts near expiry

    Options and futures must be closed, rolled or settled.

  3. Rolling positions

    Traders move to the next contract. See Front Month and Back Months.

  4. Arbitrage unwinds

    Futures-stock spreads are closed. See Index Arbitrage.

  5. Index rebalances

    Some index changes coincide. See Index Inclusion and Rebalancing.

  6. Closing auction

    Heavy volume often lands at the close.

Worked examples

Example 1 — Finding the date

20 March

March starts on a Sunday.

Example 1 — Finding the date — calculation
Fridays6th, 13th, 20th
Triple witchingFriday 20 March

Triple witching falls on the third Friday of March, June, September and December.1

Example 2 — Rolling a futures position

Position rolled

A fund holds 100 March index futures and wants to keep its exposure.

Example 2 — Rolling a futures position — calculation
Sell100 March contracts
Buy100 June contracts
ResultExposure moved to June

Rolling is one reason volume spikes around quarterly expirations. See Futures Spreads.

Example 3 — Volume spike

3× volume

A stock usually trades 2 million shares a day; on triple witching it trades 6 million.

Example 3 — Volume spike — calculation
Normal volume2 million
Triple witching volume6 million (3×)

Massive trading by hedgers and arbitrageurs creates abnormal activity on these days.1

Normal Friday vs triple witching

AspectNormal FridayTriple witching
ExpiriesSome weekly optionsOptions, index futures, futures options
VolumeNormalOften much higher
Closing auctionRegularVery large
Price noiseNormalOften elevated

How traders handle triple witching

  • Plan rolls early

    Avoid crowded last-minute trades.

  • Watch the close

    Big imbalances can move prices. See Order Book Imbalance.

  • Options sellers

    Assignment and pin risk peak. See Max Pain.

  • Day traders

    Higher volume, more noise. See Day Trading.

Advantages and disadvantages

Advantages

  • Predictable dates.
  • High liquidity for large trades.
  • Opportunities around expiry flows.

Disadvantages

  • Unusual price swings.
  • Noisy signals for technical traders.
  • Assignment and settlement surprises.

Going deeper

Read as far as you need. Each level builds on the one before it.

Why "witching"

Beginner

The name reflects the unpredictable price action as several contract types expire at once; heavy hedging and arbitrage trades create the noise.1

Quadruple witching

Intermediate

When single-stock futures also traded in the US, some called it quadruple witching; the terms are often used interchangeably. See Futures Contract.

Expiry and value

Advanced

An option's value is tied to its expiration date, so knowing exactly when contracts expire is essential around these days.2 See 0DTE Options.

Common mistakes

  1. Reading too much into the moves

    Mechanical flows, not new information.

  2. Forgetting to roll

    Expiring positions settle automatically.

  3. Market orders at the close

    Imbalances can give poor fills.

  4. Ignoring assignment risk

    Short options near the money can be assigned.

Check your understanding

Test yourself before moving on. Each answer comes with an explanation.

Q1In which months does triple witching occur?
Q2Which day of the month?

Key points to remember

  1. Triple witching is the quarterly third-Friday expiry.
  2. Stock options, index futures and futures options expire together.
  3. Volume and volatility often rise, especially at the close.
  4. Traders roll or close positions beforehand.
  5. Moves are often mechanical, not news-driven.

Frequently asked questions

Is triple witching bad for the market?

Not necessarily; it brings volume and short-term noise rather than a direction.

Should I avoid trading on triple witching?

Many traders reduce size or avoid market orders near the close.

Does it affect crypto?

Not directly, though large crypto options expiries create similar effects.

Further learning

Sources

This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.

  1. Nasdaq. Triple witching hour (glossary) (opens in a new tab) Checked .
  2. Investor.gov (SEC). An Introduction to Options – Investor Bulletin (opens in a new tab) Checked .

Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.