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The “Three Witch” in the stock market is the day when multiple derivative transactions such as futures and options are overlapping.

English is called "Triple Witching".

In the U.S. market, the third Friday of March, June, September and December is generally noticed. The deadline for stock futures, stock index options, and individual stock options is overlapping, making it easier to adjust the position of institutional investors and short-term traders.

This is enough for beginners to learn.

Three witches are easy to concentrate on buying and selling, and short-term movements and volumes are easy to grow.

However, it is not always 、ed because it is the day of the Three Witch. It is important that people who have long-term investments or投資umulative investments do not respond excessively.

The Three Witches

Three Witch is a market event where the deadline for three different derivatives is overlapping the same time.

The following three main targets are:

対象ざっくりした意味
Stock Index FuturesTrade future prices such as S&P500
Stock Index OptionsTrading the right to buy or sell the index at a certain price
Individual Share OptionsTrading the right to buy or sell individual shares at a certain price

When these deadlines are approaching, investors can settle positions or transfer them to the next deadline. This transfer may be called "roll".

It may be easier to buy and sell more than usual.

Witch

The name "Witch" is a little big.

Originally, it is a word expressed by the image that the witch squeezes the market by multiple deadlines.

The following movements are particularly conscious.

Prone to occurrenceReason
MoreMore payments and transfers before and after the deadline
In sales before pullingEasy to adjust position and hedge
Some symbols and indexes move rapidlyOptional exercising prices and hedge trading may affect

However, you don’t have to be afraid of the name.

It is practical to understand that “the day of sale is more prone to increase” rather than “the day that is always rough”.

When

In the U.S. market, three witches usually occur on the third Friday of the next month.

Home見方
MarchExpiration date close to the end of quarter
JuneExpiration date close to half term
SeptemberExpires close to the end of the 3rd quarter
DecemberClose to the end of the year

However, trading days may be changed due to holidays. T who buy short-term trading are safe to check with the stock company or exchange calendar.

In the Japanese market, it is not exactly the same mechanism as the three witches in the United States.

In Japan, "SQ" (special liquidation number) used for final settlement of futures and options is important. The Glossary of the Japanese Exchange Group explains that the SQ value is calculated based on the first value of the Nikkei average stock const。ent on the second Friday of the month for Nikkei 225 futures, Nikkei 225mini and Nikkei 225 options.

In other words, the United States is easy to organize when you look at "Three Witches", "SQ" and "Major SQ".

Figure: Three Deadつのs

Three Witch Deadline Stock Index Futures Trade indices future prices Index Options Right to buy and sell indexes Individual Share OP Right to buy and sell individual shares Due date is overlapping and sales tend to increase

The benefits and attention that beginners want to know

The advantage of knowing the three witch is that it can be a little calm in the movement of the market.

For example, a certain large stock is unnaturally up and down, where the index動く suddenly before drawing. In such a situation, you can also think about the effects of the due-time event before you ry to “whether something was wrong?”

On the other hand, it is not easy for beginners to use triumphant to win in short-term sales.

メリットNotes
Understand market attentionEasy to read
Be aware of the increase in volumeShort-term trading makes it difficult to cut out
Understand the meaning of newsThere is no "go up" or "go down"

It is not a sign that tells the direction of the market.

It is an event that is easy to buy and sell.

Common misunderstandings

We organize things that beginners can misunderstand about the three witch.

misunderstandingIn fact
Three Witch Day is always のedNot always. There are days when you go up and you can't move.
Long-term investors should always buy and sellLong-term investment should not respond excessively
It is easy to make money if you increase the volumeFast value movement and easy to lose
U.S. Three Witches and Japanese SQ are the sameThere is a similar part, but the system and schedule are different

In particular, there is no idea that “be sure to fall out”.

Market events change supply and demand. It is quite calm and can be seen just by separating it.

What should long-term investors do?

If you are investing in a long term or investing in a cumulative investment, there is little need to deal with it.

The basic policy is:

  1. Do not buy or sell
  2. I don't see too much of the temporary disturbance
  3. Protect the rules of資産umulation and asset distribution

Even if the stock price falls on the 3 witch day, it is not necessary to change the investment policy. Long-term investments include investment targets, asset allocation, cost, and co ity within a few hours and days.

Rather, it is easier to react and increase sales every time of the event to break the results with fees, taxes and misconduct.

What Should Short Traders See

T who buy and sell short-term are the following points on the day of the Three Witch.

See PointsReason
出来高Check if sales are concentrated
Value movement before pullingEasy to adjust position
IndicesMoving ahead of the current stock
Large StockEasy to buy and sell index-linked
Optional Exercise PricePrices may be subject to a specific level

However, it is not necessary for beginners to increase short-term trading on this day.

When the value movement is large, it looks like a chance. But at the same time, failure is also increased. It is more現実 to think that the day of the three witch is "the day of the victory" rather than "the day of the victory".

Three Witch is a market event where futures and options are overloaded and sales are more concentrated.

The third Friday of March, June, September and December is conscious in the U.S. market. In the Japanese market, it is more natural to understand SQ and major SQ than the same word.

It is important for beginners to not be afraid of the three witch.

There is a possibility that the value movement is rough. However, it is not necessarily a、. Long-term investments protect the rules of accounting and asset allocation. It is enough.

Reference

This article is for educational and informational purposes only, based on public information. It is not a recommendation or solicitation to buy or sell any specific security or financial product. Although care is taken with accuracy, the content and future investment outcomes are not guaranteed. Final investment decisions should be made at your own judgment and responsibility.