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Battered Stock Traders Brace for $1.9 Trillion Option Expiration

  • S&P 500 expiring options most concentrated in the 4,000 strike
  • Monthly event adds wrinkle to a already jittery stock market

Stock traders still clinging on after this week’s vicious drop in US benchmarks had better tighten their grip -- OpEx is back to whip up more turmoil.

The monthly expiration of options tied to equities and exchange-traded funds is notorious for stirring up volatility, and the next event takes place on Friday. Traders will close old positions for an estimated $1.9 trillion of derivatives while rolling out new exposures, all with the S&P 500 on the brink of a bear market.