US market braces for record options expiration
Today, the U.S. stock market faces a record options expiration with a combined notional value of approximately $7.1 trillion. This day is known as triple/quad witching, when critical derivatives — stock and index options, along with stock index futures — expire simultaneously.
Source Axios
During these sessions, trading activity and short-term volatility often intensify, especially as the market approaches closing. This is due to widespread position unwinding and rebalancing by investors, which can significantly affect price movements.
Analysts advise traders to exercise heightened caution during this period and to consider the potential impact of the large trading volumes on market fluctuations.
