The largest-ever September "Triple Witching Day," with over $5 trillion in options expiring! Tonight, will the US stock market enter a "volatile window"?

This Friday, the largest-ever September “Triple Witching Day” is approaching, with U.S. stock options and futures contracts worth over $5 trillion set to expire on the same day, likely injecting more uncertainty into market trends. “Triple Witching Day” refers to the third Friday of every quarter, when three types of contracts—stock index futures, stock index options, and individual stock options—all expire simultaneously in the U.S. market. According to Goldman Sachs options expert John Marshall, more than $5.3 trillion in notional value options will expire this Friday, including $3 trillion in S&P 500 index options and $935 billion in individual stock options. In terms of relative scale, the total notional value of options expiring this time is equivalent to 8% of the total market value of the Russell 3000 Index, marking the largest scale ever for a September “Triple Witching Day.” Options analysis firm SpotGamma pointed out that nearly 90% of positions expiring this time are call options. As these positions are closed upon expiration, the long stock positions held by traders for hedging will be unwound, meaning an important source of market buying support will disappear. For short-term market trends, Goldman Sachs predicts that the market rebound momentum is expected to continue until the Friday options expiration event is completed, usually related to the “gamma squeeze” effect before expiration, followed by a pullback next week. Risk Warning and Disclaimer The market has risks, and investment should be made cautiously. This article does not constitute personal investment advice, nor does it consider the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suited to their particular circumstances. Investment decisions made accordingly are at your own risk.