Stock options, index options, index futures, and single-stock/ETF futures all expire at the same time four times each year, March, June, September and December. This event is often referred to as Quadruple Witching or as we prefer to call it in the Stock Trader’s Almanac (page 78), Triple Witching.
March’s option expiration week performance is second only to December’s and has a bullish bias. DJIA and S&P 500 have recorded weekly gains in roughly twice the number of weeks as there have been declines. NASDAQ’s track record since 1983 is slightly softer with 21 advances and 13 declines, but all three indices have logged gains in options expiration week in eight of the last nine years. However, the week after tends to be bearish for DJIA and S&P 500. NASDAQ is mixed.