If traders were bored with the stock market's meandering over the last week, the next five sessions promise to deliver more excitement and volatility thanks to quadruple witching.
Friday represents not only options expiration, which usually indicates more volatility than usual, but it is also the second quadruple witching day this year. Quadruple witching occurs when contracts for stock index futures, stock index options, stock options and single stock futures all expire. This can lead to dramatic moves in the equity markets.
Paul Mendelsohn, chief investment strategist with Windham Financial, said the quadruple witching is "the most important thing happening" next week because of the volatility expected. ...
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