Double Witching

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Definition: Double Witching

Double witching occurs when two related classes of options or futures out of the three which are stock options, index options and index futures expire on the same day. Derivatives like options and futures have different expiry date according to the underlying assets and witching hour is the last hour of the trading day. 

Such kind of situation results in various arbitrage strategies to close out options and lead to more volatile market.


Witching hour has many meanings but in context of stocks it is the last hour of stock trading, which is the third Friday of every month. Witching hour is generally characterised by more than average volatility.

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