S&P 500 Trading Volume Spikes at Wall Street Close: Markets Wrap
- Around $5.5 trillion in options estimated to expire on Friday
- Expiration coincided with index reshuffle by S&P Dow Jones
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Wall Street’s massive expiration of options not only left stock traders more cautious, it also drove one of the leaders of the bull market to a roller-coaster ride. Volume soared at the close of trading.
It was estimated that $5.5 trillion expired during the quarterly event ominously known as “triple witching” in which derivatives contracts tied to equities, index options and futures mature. Nearly 18 billion shares changed hands on US exchanges Friday. That’s over 55% above the three-month average.