Quadruple Witching and How Options Traders can Take Advantage

Tom Gentile

Posted in
Big Picture

By: Tom Gentile
March 10th, 2022

2 mins read

Quadruple Witching will take place Friday, March 18

That day should experience a great deal more options volume due to the options of stock index futures, stock index options, stock options, and single stock futures expiring simultaneously.

This situation causes many Money Managers, Hedge Fund Managers. Market Makers, etc. to not only worry about their current months options positions closing, but they also find themselves rolling out or opening up options on securities of a further out / next month out expiration.

This increase in options volume could lead to an increase in price volatility, but it doesn’t guarantee it.

What is going on is options Implied Volatility (IV) is elevated making options premiums on securities much more expensive.

Options Strategy Consideration

With Quadruple Witching coming up, possibly causing some price volatility coupled with higher than normal IV it is probably best to consider a Selling Strategy like a Put Credit Spread over a Buying Strategy like going Long a Call.

One can use one of my search tools from my online options analysis software ‘Tom’s Tools’ (www.tomsoptiontools.com) called Money Calendar to find a security (stock or ETF) that has a price history of trading higher 9 or 10 of the past ten years.

A bullish pattern history with that success rate is a candidate we would consider Selling to Open a Put Credit Spread on.

We have an opportunity to profit by Selling-to-Open a Put Credit Spread on the XLK, the Technology Select Sector SPDR Fund.

Since option premiums are priced higher than normal, this bodes well for the prospect of earning more money by selling to open a spread.

With a Put Credit Spread we want to position the option strikes where we don’t believe the stock will go or be trading at on expiration. We need the security to be above the sold strike of the spread to realize max profitability on the trade.

Take a look at the Money Calendar data on the Technology Select Sector SPDR Fund, (XLK). My company can teach you how to execute this strategy and we have videos in our library that can help as well.

App: Toms Option Tools

Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.


Stock and options trading has large potential rewards, but also large potential risk.

You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.

This is neither an offer to buy/sell/ or recommend a particular stock or option.

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.

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