Stock options, index options, index futures, and
single-stock/ETF futures all expire at the same time four times each year,
March, June, September and December. This event is often referred to as
Quadruple Witching or as we prefer to call it in the Stock
Trader’s Almanac (2021 page 106), Triple Witching.
March’s option expiration week performance is second
only to December’s and has a bullish bias. DJIA and S&P 500 have recorded
weekly gains in about twice the number of weeks as declines. NASDAQ’s track
record since 1983 is slightly softer with 23 advances and 15 declines, but all
three indices have logged gains in options expiration week in ten of the last thirteen
years. However, the week after is bearish for DJIA, S&P 500 and NASDAQ.
S&P 500 is weakest, down eight of the last nine. Last year as covid-19
began spreading globally and economies began to shut down, DJIA and S&P 500
suffered their worst weekly declines during March’s quarterly options