Double Witching


DEFINITION of '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.

BREAKING DOWN 'Double Witching'

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.

  1. Options Contract

    A contract that allows the holder to buy or sell an underlying ...
  2. Index Futures

    A futures contract on a stock or financial index. For each index ...
  3. Quadruple Witching

    The expiration date of various stock index futures, stock index ...
  4. Index Option

    A financial derivative that gives the holder the right, but not ...
  5. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  6. Triple Witching

    An event that occurs when the contracts for stock index futures, ...
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