Today is Triple Witch Day in the US, which makes traders generally a little nervous. Triple Witching occurs four times a year, on the third Friday of each quarterly month. The reason for the triple witching is that the June stock index futures, options based on the June stock index futures, and June stock options, such as stock options of Women's University and Microsoft, expire. In addition to June, the other three times are March, September, and December. Quarterly options usually have the largest open interest, which means that a large number of options and futures will expire today. As for futures, most futures will be rolled over to the next month, so the expiration of options is more important in comparison. The word witching is a description of the fear of the market, imitating Halloween. This is where triple witching comes from. In the past, such days had very high volatility, but now it is better. So today, a large number of options will expire in the US market. For those who hold long options, they hope that the market will rise, and the options in their hands will be more valuable. But there are other forces that do not want the market to rise. They do not want to see the options become more out-of-the-money, so opposing forces emerge. In the past, this would lead to greater volatility, but it is not as serious now. But you also need to keep an eye on next week, where we may find that after thousands of options expire today, traders want to open new options positions because they have a lot of money on hand, and they will want to re-hold next week because they lost their previous exposure. There will be a lot of options activity, so the week after triple witching will have more volatility and market activity. You have to pay attention not only to today, but also to next week. For options in the crypto market, please refer to my previous article.

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