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Double witching day |
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Double witching dayA trading day when of two related classes of options and futures expire, resulting in a variety of arbitrage strategies to close out positions.Double witching day Similar MatchesTriple witching hourTriple witching hourThe four times a year that the S&P futures contract expires at the same time as the S&P 100 index option contract and option contracts on individual stocks. It is the last trading hour on the third Friday of March, June, September, and December, when stock options, futures on stock indexes, and options on these futures expire concurrently. Massive trades in index futures, options, and underlying stock by hedge strategists and arbitrageurs cause abnormal activity (noise) and volatility. SwitchingSwitchingThe transferring of assets from one mutual fund or unit trust to another within a range of funds with differing objectives such as bonds, capital growth, chemicals, overseas capital growth, all managed by the same mutual fund company or unit trust institution. In the USA, switching can normally be conducted with no charge in a no load range of funds. In a range of load funds a charge is usually incurred. In the UK it is usually the case that one switch per year can be made without cost. Thereafter a charge will be made to the investor. Switching optionsSwitching optionsA sequence of transactions in which exercise of one option creates one or more additional options. Investment-disinvestment, entry-exit, expansion-contraction, and suspension-reactivation decisions are switching options. Phone switchingPhone switchingTransferring money between funds in the same mutual fund family by telephone request. There may be a charge associated with these transfers. Phone switching is also possible among different fund families if the funds are held in street name by a participating broke../../finance-glossary/dealer. Fund switchingFund switchingThe movement of assets in one mutual fund or unit trust to another within a range of funds with differing objectives, all managed by the same investment company. Further SuggestionsSwitchingFund switching triple witching hour |
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