common-close-0
BYDFi
Trade wherever you are!
header-more-option
header-global
header-download
header-skin-grey-0

How does options triple witching differ from regular options expiration in the cryptocurrency market?

avatarDoruk Durgun BarışNov 24, 2021 · 3 years ago3 answers

Can you explain the difference between options triple witching and regular options expiration in the cryptocurrency market?

How does options triple witching differ from regular options expiration in the cryptocurrency market?

3 answers

  • avatarNov 24, 2021 · 3 years ago
    Options triple witching and regular options expiration are both important events in the cryptocurrency market, but they differ in terms of timing and impact. Regular options expiration occurs on a set date each month, usually the third Friday, and it marks the end of the options contract. On the other hand, options triple witching refers to the simultaneous expiration of three different types of options: stock options, index options, and futures options. This event occurs four times a year, on the third Friday of March, June, September, and December. Triple witching can lead to increased volatility and trading volume as traders close out their positions and adjust their portfolios. It's important for cryptocurrency traders to be aware of these events and their potential impact on the market.
  • avatarNov 24, 2021 · 3 years ago
    Options triple witching and regular options expiration may sound similar, but they have distinct differences in the cryptocurrency market. Regular options expiration is a monthly event that marks the end of options contracts. It usually takes place on the third Friday of each month. On the other hand, options triple witching is a quarterly event that occurs on the third Friday of March, June, September, and December. During triple witching, three different types of options expire simultaneously: stock options, index options, and futures options. This can result in increased trading activity and volatility in the cryptocurrency market. Traders should pay attention to these events and adjust their strategies accordingly.
  • avatarNov 24, 2021 · 3 years ago
    Options triple witching and regular options expiration are two significant events in the cryptocurrency market, but they have some key differences. Regular options expiration happens on a monthly basis, typically on the third Friday of each month. It marks the end of options contracts and can influence trading activity. On the other hand, options triple witching occurs quarterly, specifically on the third Friday of March, June, September, and December. During triple witching, three different types of options expire simultaneously: stock options, index options, and futures options. This can lead to increased market volatility and trading volume. Traders should be aware of these events and consider their potential impact on their trading strategies.