Options Expiration Week: What to Expect

By NinjaTrader Team

Options expiration occurs (for most markets) on the third Friday of the month. Because larger institutions may carry various positions that require hedging, the expiration of these options positions may lead to activity in the futures market that might not be explained by a news event.  

SpotGamma Founder Brent Kochuba, who has over 20 years of experience in the options markets on both the buy and sell sides, joined us on this week’s episode of “Trader’s Workshop” to discuss why this week’s option expiration is one of the largest he’s has seen in recent memory. Some of these factors are expected (e.g., triple witching every third month, starting in March), while others are related to market performance (e.g., bullishness in the stock market).

Additional topics discussed in this free livestream:

  • Comparing dispersion and volatility for 2021 and 2024

  • The relationship between gold futures and stock market performance 

  •  How an imbalance in put/call volume can lead to a feedback loop 

  •  Price map potential for the S&P 500 during an eventful next week 

  •  What’s replacing the magnificent seven as the driver of the S&P 500 and Nasdaq 

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