Quadruple Witching & 3 PowerRatings Stocks
Friday is the infamous Quadruple Witching day in the financial markets. The name alone is enough to send shivers of fear up any investor’s spine.
It really makes it sound like evil forces are descending to destroy your account. Fortunately, the truth is far more docile than the name would suggest.
Quadruple Witching occur 4 times per year on the 3rd Friday of March, June, September and December. It refers to the expiration day of stock options, index futures, index options and single stock options futures. This day use to be referred to simply as Triple Witching prior to the advent of single stock futures in 2002.
All four of the expirations do not happen at the same time on Friday which helps mitigate potential volatility. During the early 1990s, one could expect increased volatility and price swings as investors rushed to rebalance their holdings as the options/futures expired.
Three of the top volume sessions ever recorded on the NYSE occurred on Witching days. However, recently, reactions have been muted and quite docile in comparison. Should short term stock traders be concerned on these quad expiration days?
While there is certainly the potential for increased volatility, there is no need for stock traders to be overly concerned about the effects of Quadruple Witching.
Short term stock traders need an effective system for finding stocks poised to move. Our PowerRatings is one such proven and effective stock locating system. They are a statistically based tool that is built upon 14 years of studies into the inner nature of stock prices.
It ranks stocks on a scale of 1 to 10 with one being the most volatile and least likely for short term gains and 10 proven to be the most probable for gains over the next 5 days. In fact, 10 rated stocks have shown to have a 14.7 to 1 margin of outperforming the average stock in the short term.
Here are 3 top rated PowerRatings stocks for your consideration:
^NKTR^
^TASR^
^LZB^
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David Goodboy is Vice President of Business Development for a New York City based multi-strategy fund.