Everyone’s (my) favorite time of the Quarter. Quadruple Witching typical indicates a potential for large volatile movement as we move close to many option contracts expiring across the broader market. Seen from previous Quad Witchings this year, this could lead to major reversals as people try to hedge for the next quarter.
In terms of how to play this: I’d personally exit larger contracts before EOD today as positions that are heavily correlated with major indices could be at a higher risk of being affected by said volatility. Playing SPY or any other index tomorrow should be play same-day rather than overnight.
The point of this post is just a warning to act accordingly and manage risk. The prediction is that there may be a large move Friday, not a prediction on whether that moves the Markets higher or lower.
I will personally choose to Play Towards every QW date, and then Play Away from it.
From what I’m seeing, those are the easier ways to read the trends.
Unless it’s a Bear Market like we have now, you can see how narrow (poor) the range is for each of them.
Unless paired with big market news on the same day, it’s a nothing-burger.
Average Range from 2016-present is a measly 1.27%.
Very Low Volume on most of them.
It’s best to follow JB, Tiddly, and other better day-trade scalpers for their signals–if/when they choose to play a QW date.
Each QW date is pretty much a dead-end, a reset, if you will.
So trading towards them and away from them is best–then work with tight scalping exits in the day of.
Yes, fuck grammar.
You can track and possibly back-test the dates yourself…
