Is a Quadruple-Witching Walloping a Good Thing?

Post-Fed anxiety has the S&P 500 Index (SPX) down 1.2% at last check

Sep 18, 2015 at 1:47 PM
facebook X logo linkedin


It's quadruple-witching Friday, when stock index futures, stock index options, stock options, and individual stock futures all expire. While standard options expiration occurs on the third Friday of every month, quadruple witching happens just four times a year -- in March, June, September, and December. Today, the U.S. equities markets are getting walloped on post-Fed anxiety, so Schaeffer's Senior Quantitative Analyst Rocky White ran the numbers to see if this negative price action on a historically volatile trading day could mean anything going forward.

Since 2009, there have been 26 other quadruple-witching expirations. Below is a chart summarizing the S&P 500 Index (SPX) returns on those days, as well as the broad-market barometer's returns over five subsequent time frames. On average, the SPX posts modest gains in the wake of a quadruple-witching expiration, with the greatest return of 1.9% coming one month out.

150918spx1
150918spx2

Drilling down, there have been five other instances when the S&P 500 fell significantly on quadruple-witching Friday. Today's drop could be a short-term bullish indicator, considering in the five other times this has occurred, the SPX has gone on to average a one-month gain of 4.3%.

150918spx3

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI