Home Markets Wall Street traders bracing for fresh equity-market fireworks of $3.5 Trillion ‘Triple...

Wall Street traders bracing for fresh equity-market fireworks of $3.5 Trillion ‘Triple Witching’ event

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Triple witching coincides with a rebalancing of benchmark indexes including the S&P 500, a combination that tends to spark single-day volumes that rank among the highest of the year.

Bloomberg: Wall Street traders are bracing for fresh equity-market fireworks Friday after another week of global turbulence.

In a quarterly event known as triple witching, roughly $3.5 trillion of single-stock and index-level options are set to expire, according to Goldman Sachs Group Inc. At the same time, more near-the-money options are maturing than at any time since 2019 — suggesting a bevy of investors will actively trade around those positions.

And once again, this triple witching coincides with a rebalancing of benchmark indexes including the S&P 500 — a combination that tends to spark single-day volumes that rank among the highest of the year. According to an estimate from Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, the rebalance in…

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