Triple Witching: What Futures Traders Need to Know for Tomorrow

What Is Triple Witching?

Triple witching occurs four times a year—on the third Friday of March, June, September, and December—when stock index futures, stock index options, and stock options all expire simultaneously. This convergence creates a unique trading environment that every futures trader should understand.

What Happens During Triple Witching?

• Volume Surge: Trading activity can spike dramatically as institutions roll over or close positions.
• Increased Volatility: Price swings can be sharp and unpredictable, especially near the open and close.
• Institutional Flows Dominate: Market behavior often deviates from typical technical patterns.

Implications for Futures Traders

• Liquidity is High—but So Is Risk: While there’s plenty of activity, slippage and wider spreads are common.
• Execution Challenges: Rapid price changes can make order fills tricky.
• Short-Term Noise: Expect unusual moves that may not align with your usual indicators.
• The September contracts i.e. ESU25, MNQU25 etc. will stop trading at 8:30 Am Central time and will cash settle based on a special settlement price that usually comes out closer to 9 AM Central. More on that here: https://www.cmegroup.com/trading/equity-index/settlement.html

Trading Recommendations

• Stay Disciplined: Avoid chasing moves; stick to your plan.
• Use Limit Orders: Helps control slippage in fast markets.
• Reduce Position Size: Manage risk during volatile periods.
• Consider Scalping or Staying Flat: If you’re experienced, short-term strategies can work. If not, sitting out is a valid choice.
• Risk: the last traded price or final traded price will rarely be the same as the Final settlement price. we do not recommend waiting for the final settlement. We recommend exiting any position you have in September prior to 8:30 a.m. Central tomorrow morning.

Bottom Line: Triple witching can present opportunities—but also significant risks. Preparation and discipline are key.