Triple Witching - Markets Could Be Bumpy This Week

Triple Witching Hits on Friday - option expiration for stocks, bonds, and commodities and a typically bumpy week of market activity.

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This week, on Friday, we get what is dubbed ‘Triple Witching Hour’. At the end of the quarter - March, June, September, & December - on the third Friday of the month, options for the major months expire for stocks, bonds, and commodities. Because of the enormous number of options expiring, and all of the hedging that typically goes along with options sellers, reversing positions - or unwilling them, can create volatility throughout the week. Because I trade so much with options, I try and take advantage of this as an opportunity to profit.

Going in to this week I will add a lot of At-The-Money straddles knowing that this volatility could bring in continued profits.

On the economic data front, there is not too much in the way of market moving data. However, Retail Sales dropped reiterate to the markets that the consumer is slowing down. While this, in itself, likely will not move the markets too much, it could bring in some additional volatility.