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 (NYSEARCA:DIA) and S&P 500(NYSEARCA:SPY) have recorded weekly gains in better than twice the number of weeks as declines. NASDAQ’s track record since 1983 is slightly softer with 22 advances and 13 declines, but all three indices have logged gains in options expiration week in nine of the last ten years. However, the week after is bearish for DJIA, S&P 500 and NASDAQ(NYSEARCA:QQQ). S&P 500 is weakest, down six years straight.