The largest scale in history! Super "Four Witching Day" strikes, will the US stock market experience extreme volatility tonight?
According to the Wise Finance APP, it is expected that the US stock market will experience volatility on Friday, as it is the quadruple witching day - when stock index futures, stock index options, individual stock options, and individual stock futures will all expire simultaneously. According to Goldman Sachs data, there will be over $7.1 trillion nominal value of options contracts expiring this Friday, setting a new historical record. This includes around $5 trillion in options linked to the S&P 500 index and $880 billion in options linked to individual stocks. Goldman Sachs analysts say that while the options expiration date in December is typically the largest of the year, Friday could see the largest options expiration date ever. Goldman Sachs states that in order to better understand this scale, the nominal exposure of the options expiring on Friday represents approximately 10.2% of the total market value of the Russell 3000 index.
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