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Glossary

Double Witching

Double witching refers to a market event when two different classes of stock options or futures contracts expire at the same time.

Luca Moschini

— 1 min read

Definition

Double witching occurs when two categories of derivatives reach expiration simultaneously. These expirations can involve combinations of stock options, index options, stock index futures, or single-stock futures.

This event typically takes place on the third Friday of certain months and can affect trading activity due to the coordinated contract expirations.

How It Works

During double witching, multiple derivative contracts tied to stocks or indexes expire on the same day. As contracts settle or are closed, trading volume may increase as positions are adjusted or concluded.

The timing of expirations concentrates activity into a single session, distinguishing double witching days from regular trading days.

Why the Term Matters

Double witching highlights periods when derivative markets experience synchronized expirations. Understanding the term helps explain temporary changes in market activity related to contract settlements.

It also provides context for analyzing volume and price behavior during scheduled expiration events.

  • Options Expiration
  • Futures Contracts
  • Index Options
  • Stock Index Futures
  • Quadruple Witching

FAQs

What is double witching?
Double witching is the simultaneous expiration of two different classes of stock options or futures contracts.

When does double witching occur?
Double witching generally occurs on the third Friday of the month, excluding March, June, September, and December.

Which contracts expire during double witching?
Contracts that may expire during double witching include stock options, index options, stock index futures, and single-stock futures.

Why is it called double witching?
It is called double witching because two categories of derivative contracts expire at the same time.

Does double witching happen every quarter?
Double witching does not occur in March, June, September, and December, when additional contract expirations take place.

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All content is provided for educational purposes only and does not constitute investment advice. Trading involves risk, and past performance is not indicative of future results. Please review our full Risk Disclosure for additional details.

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