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. Index Futures

    A futures contract on a stock or financial index. For each index ...
  2. Options Contract

    A contract that allows the holder to buy or sell an underlying ...
  3. Index Option

    A financial derivative that gives the holder the right, but not ...
  4. Quadruple Witching

    The expiration date of various stock index futures, stock index ...
  5. Arbitrage

    The simultaneous purchase and sale of an asset in order to profit ...
  6. Futures Contract

    A contractual agreement, generally made on the trading floor ...
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