Skittish Stock Traders Are Bracing for $2 Trillion Option Expiration
- BofA survey shows optimism about global growth at record low
- It’s not an easy time, particularly for stocks: Katy Kaminski
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Inflation is surging, central banks are on the move and now it’s earnings season. To top it all off, stock traders face the market-roiling potential of a monthly options expiration estimated at more than $2 trillion.
Roughly $495 billion in single-stock derivatives are set to expire Thursday, with another $980 billion of S&P 500-linked contracts and $170 billion in options tied to the State Street fund tracking the S&P 500 all running out as the holiday-shortened week ends, according to estimates from Goldman Sachs Group Inc.’s Rocky Fishman. Such volumes have been a source of volatility in the past year.