QUADRUPLE WITCHING OPTION EXPERATION.
Alert: Friday March 19 , 2010 Quadruple Witching of Option Expirations

Quadruple Witching
What Does Quadruple Witching Mean?On this day, all contracts for stock index futures, stock index options, stock options
and single stock futures (SSF) expire. Quadruple witching days occurs on the third Friday of March, June, September and December of every year.
Historically, Quadruple Witching is a very volatile trading day. Additionally, in most instances the following Monday, we can observe the reverse of what the market did on Friday of quadruple witching.
In the last few years, investors have learned to accept the volatility that occurs. Trading can be heavy and volatile a few days prior to quadruple witching.
Many times stocks will close that Friday just below the option expiration strike price. For example the stock of XYZ may close Friday trading at $9.98, a few cents below $10 strike price. At that point, the option expire worthless and the owner will keep the stock in his portfolio.
If Friday is a down day, the investor will have the opportunity to buy the stock of his/her choice. If Friday closes up, then the investor will have the opportunity to sell stocks with the anticipation of buying them back the following Monday at much lower price