Below the surface of the Bull Market

March Option Expiration Week Has a Bullish Bias

March’s option expiration week performance is second only to December’s and has a bullish bias.

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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 (2021 page 106), 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 about twice the number of weeks as declines. NASDAQ’s track record since 1983 is slightly softer with 23 advances and 15 declines, but all three indices have logged gains in options expiration week in ten of the last thirteen years. However, the week after is bearish for DJIA, S&P 500 and NASDAQ. S&P 500 is weakest, down eight of the last nine. Last year as covid-19 began spreading globally and economies began to shut down, DJIA and S&P 500 suffered their worst weekly declines during March’s quarterly options expiration.

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Originally Posted by Almanac Trader