Look for stock market pain next week after Friday's 'triple witching' options expiration

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The week after the September expiration of stock options and index futures is historically among the weakest of the year.

Today is triple witching expiration , the quarterly expiration of single stock and index options, and index futures. Each of the four days is traditionally one of the most actively traded sessions of the year. It's occurring at an unusual moment: the S & P 500 is at an historic high. That, Chris Murphy at Susquehanna says, makes bulls happy, and bears unhappy. "Given we have rallied back to all-time highs 1) most puts are deep out of the money and 2) calls are in the money ...

06% Source: Stock Trader's Almanac "End-of-Q3 portfolio restructuring is the most likely explanation for this trend as managers trim summer holdings and position for the fourth quarter," Hirsch said. S & P 500 rebalancing today The S & P 500 will see three new entrants at the close today, each of which will begin trading as part of the S & P on Monday: Dell Technologies , Erie Indemnity and Palantir Technologies .

 

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