The US stock market is set to face its final test this week, with the $4.7 trillion “triple-witching” options expiration on Friday. This event, occurring quarterly, can be associated with increased volatility. However, experts believe that this month’s expiration might actually help restore a sense of calm.
The notional value of these contracts varies depending on the methodology used for calculations. Goldman Sachs analysts estimate it to be around $4.7 trillion, based on Wednesday’s close values. Despite this, market conditions have been volatile in recent weeks.
Investors will need to navigate one last hurdle before the weekend. The expiration of options contracts tied to over $4.5 trillion in stocks is a significant event that can impact markets. As investors look ahead to the weekend, they must be prepared for potential price swings.
Source: https://www.marketwatch.com/story/investors-face-one-last-test-this-week-fridays-4-7-trillion-triple-witching-options-expiration-e8f435c1