To gain an edge, this is what you need to know now.
Option Expiration
Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
- The chart shows that the stock market has dipped below the algo selling line.
- In addition to the breach of the algo selling level, algo selling is related to option expiration.
- $4 trillion worth of options are expiring tomorrow. This is the biggest option expiration in two years.
- Tomorrow is also quadruple witching. In quadruple witching, stock index futures, futures options, stock options, and single stock futures expire.