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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Financial Services

August's stock option expiry to add spice to Friday's trading

The expiry of August's stock-market options could add some spice to Friday's trading session already reeling from global events and fears of rising interest rates.

US stock option contracts with a notional value of $2.2 trillion are set to expire, according to traders, about average for an off-month expiration.

Monthly options expire every month as the name suggests, but once a quarter - in March, June, September and December - an event known as 'Triple Witching' takes place, causing notional value of expiring options to swell as quarterly and sometimes calendar-year options expire along with monthlies and weeklies.

Sessions where monthly options expire often see higher-than-normal volatility, and options-market analysts warned that the same could happen on Friday.

Investors are already braced for further falls in stocks on Friday with futures for the Dow, S&P and Nasdaq all pointing downwards as the losing streak on Wall Street continues.

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