Quadruple Witching Friday

Published 09/21/2012, 12:39 AM
Updated 07/09/2023, 06:31 AM
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This morning, the S&P 500 Index e-mini futures (ES-U2) are trading higher by 4.75 points to 1465.25 per contract. Traders and investors should be focused on the U.S. Dollar Index futures (DX-Z2) which are starting the day lower. This decline in the U.S. Dollar Index is obviously helping to inflate equity and commodity prices.

Traders can easily see how the ProShares Ultra DJ-UBS Crude Oil (NYSEARCA:UCO), Deutsche Bank AG DB Gold Double Long ETN (NYSEARCA:DGP), Sprott Physical Gold Trust (NYSEARCA:PHYS) and the ProShares Ultra Silver (ETF) (NYSEARCA:AGQ) are all trading higher before the opening bell at the New York Stock Exchange. This could all change if the U.S. Dollar Index some how catches a bid higher today.

Today, is a quadruple witching options expiration. This means that options contracts will expire in stock index options, stock options, single stock futures, and stock index futures. Basically, everything under the sun will expire today. Traders should also be aware of many contracts rolling over in the futures markets.

For example, S&P 500 Index e-mini traders will now have to use the December contract (ES-Z2) instead of the current September (ES-U2) contract which expires today. Generally, the major stock indexes will become very muted and lackluster after the first couple of hours on a quadruple witching options expiration Friday.

Below you may find the video.

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