Roughly $7 trillion worth of stock index futures, stock index options, and single-stock options expired simultaneously on September 18, making it the second-largest quadruple witching event in market history. The event occurred just two days after the Federal Reserve raised its target interest rate by 25 basis points to a range of 3.75%-4.00%, its first rate hike in more than three years. Trading activity concentrated during the final hour of the session, known as the « witching hour, » during which volumes spiked to several times above normal levels. The jump from $6.2 trillion, Citadel Securities’ late August estimate, to the final $7 trillion figure reflects a meaningful buildup in positioning during the first weeks of September, likely driven by traders hedging around the anticipated Fed decision.
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