A $2.2 Trillion Crunch Time Looms for Traders Loaded With Stock Hedges
- Friday’s OpEx lands in market where investor caution growing
- Investors are holding positions until ‘the bitter end’: Sears
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Stock investors, on guard for turmoil with everything from geopolitics to Federal Reserve hawkishness strafing their nerves, are bracing for a chaotic end to the week with $2.2 trillion of option expirations set to hit the market Friday.
The monthly event involves $545 billion of derivatives across single stocks scheduled to expire, Goldman Sachs Group Inc. estimates. About $985 billion of S&P 500-linked contracts and $165 billion in options tied to the world’s largest exchange-traded fund, the SPDR S&P 500 ETF Trust (ticker SPY), will run out, according to the firm’s strategist Rocky Fishman.