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Quadruple Witching Month


The month that that marks the expiration of any four classes of option contracts. This month, the last month in every quarter (such as September, December, etc.) can experience noticeable volatility because option holders hasten to exercise their options before expriation. Options not exercised by that time will expire worthless, causing potential losses to the option holder. Many traders avoid entering positions on quadruple witching months.

 



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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