Friday is set to be the largest “witching day” on record, with about $7.1 trillion worth of options on stocks, ETFs, and indexes expiring, according to Citigroup strategists.
“Witching days” happen quarterly when multiple derivatives expire at the same time. They are often linked to market volatility as traders adjust or roll over positions.
However, Citi notes that volatility is usually lower than feared, except during unusual periods such as the pandemic-driven trading surge.
