A $6.5 Trillion ‘Triple Witching’ Heralds Return to Volatility

Investors are bracing for $6.5 trillion of notional US options expiring on Friday, in a move that could free stocks to swing more wildly than the subdued changes seen in recent weeks.

Every quarter, a cluster of different exchange-traded derivatives contracts all terminate on the same day, leading to what is sometimes dubbed a “triple witching” event by market watchers. The event isn’t expected to add additional volatility on Friday itself, but could open a path to more sudden stock market moves next week.