Wall Street had a good week of recovery. However, the index is struggling to maintain its highest value. The Dow Jones rose 300 points on Wednesday, but revised it to nearly 300 points from the high. This was also seen in Thursday’s trading session, but the Dow Jones finished under the flatline.
The index is tested on Fridays as investors and indexes tackle the quarterly “triple witching” phenomenon.
Triple Witching is an event held on the third Friday of March, June, September and December. This happens four times a year if you are not aware of this phenomenon, triple witching, or simultaneous expiration of stock options, index futures, and index options. The first triple witch of 2025 will be held this Friday.
This phenomenon was previously known as the “Four-leaf Witch,” but on the same day the detached house options also expired. However, single stock options have not been traded since 2020, so they have been renamed Triple Witching.
This will take effect during the final time of the trading session once the contract expires. Traders can expect extraordinary price movements as they consider adjusting or closing their positions with inventory or index options. This will become natural for stocks with market capitalization and heavy derivative volumes to see higher movements during this event.
