Ready for a Wild Day? Quadruple Witching, Index Rebalance Coming
In the U.S. stock market, Friday’s quarterly expiration of futures and options on indexes and individual stocks occurs amid S&P 500 rebalancing, an event that usually brings surging volatility and trading.
Last time “quadruple witching” and an S&P 500 rebalancing took place on Sept. 15, 8.7 billion shares changed hands on U.S. exchanges, 38 percent above the three-month average.
S&P 500 rebalance would force $19.7 billion of trades, up from an estimated $13.2 billion a year ago, S&P Dow Jones estimated on Dec. 10.
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