Quadruple witching day occurs four times a year, on the third Friday in the last month of each quarter.
The expiration date for four types of standardized contracts: stock options, stock index options, stock index futures, and single stock futures.
In the past, when all contracts expired at the same hour of the day, trading could be extremely volatile as professional investors attempted to capitalize on pricing differences.
Investors often unwind their positions on these contracts on, or immediately before quadruple witching days, which leads to increased trading volume on those days.
Quadruple witching day occurs once every quarter on the third Friday of March, June, September, and December;
stock options, stock index options, stock index futures contracts, and single stock futures expire on the same day in the United States.
Triple witching hour:
The four times a year that the S&P futures contract expires at the same time as the S&P 100 index option contract and option contracts on individual stocks.
It is the last trading hour on the third Friday of March, June, September, and December, when stock options, futures on stock indexes, and options on these futures expire concurrently.
Massive trades in index futures, options, and underlying stock by hedge strategists and arbitrageurs cause abnormal activity and volatility, as traders and arbitrageurs unwind investment positions and produce large price movements in securities.