Double Witching

Similar to triple witching, but instead of three classes of options or futures expiring on the same day, double witching is when only two classes (any two) are expiring. The three classes are stock options, index options, and index futures.

In other words, this is when option contracts and futures contracts expire on the exact same day.

Double and triple witching days can be volatile at times as arbitrageurs scramble to close out their positions.

Investment dictionary. . 2012.

Look at other dictionaries:

  • double-witching — ˌdouble ˈwitching also ˌdouble ˈwitching ˌhour noun [singular] informal FINANCE a time on a financial market when two types of Futures (= contracts to buy or sell shares etc at a fixed price on a fixed date) or option S (= rights to bu …   Financial and business terms

  • double witching — ( ● double …   Useful english dictionary

  • Double Witching —    ► See Triple Witching. * * * double witching UK US noun [U] STOCK MARKET ► DOUBLE WITCHING HOUR(Cf. ↑double witching hour) …   Financial and business terms

  • double witching hour — UK US noun [S] (also double witching) STOCK MARKET ► the final hour of trade on a financial market on the day when two of three types of option or futures agreements end: »The expiry of the September futures and options meant traders were busy… …   Financial and business terms

  • double witching day — The last trading day before expiry of options and futures on the same underlying asset, resulting in a variety of arbitrage strategies to close out positions. Bloomberg Financial Dictionary …   Financial and business terms

  • witching hour — midnight: a rendezvous at the witching hour. [1825 35] * * * witching hour noun The hour when witches are supposed to stir into activity, midnight (see also double witching (↑hour) under ↑double, triple witching (↑hour) under ↑triple) • • • Main… …   Useful english dictionary

  • Triple witching hour — is the last hour of the stock market trading session (3:00 4:00 P.M., New York Time) on the third Friday of every March, June, September, and December. Those days are the expiration of three kinds of securities:* Stock index futures. * Stock… …   Wikipedia

  • triple-witching — The simultaneous expiry of index futures, index options and individual stock options. Exchange Handbook Glossary * * * triple witching ˌtriple ˈwitching also ˌtriple ˈwitching ˌhour noun [singular] informal FINANCE a time on a financial market… …   Financial and business terms

  • Triple Witching —    The simultaneous expiry of stock index futures contracts, of stock index options and of options on individual stocks. Occurs every quarter and can often increase volatility, notably on the US stock markets. Double witching is similar to triple …   Financial and business terms

  • Scarlet Evil Witching Black — Infobox Album Name = Scarlet Evil Witching Black Type = studio Artist = Necromantia Released = 1993 Recorded = Genre = Black metal Length = 47:15 Label = Osmose Productions Producer = Reviews = Last album = Crossing the Fiery Path (1993) This… …   Wikipedia

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