Double witching day

Definition:

The last trading day before expiry of options and futures on the same underlying asset, resulting in a variety of arbitrage strategies to close out positions.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Shakeout

A dramatic change in market conditions that forces speculators to sell their positions, often at a loss.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio