Billing takes place four times a year: Options and futures based on shares and indices expire on the so-called witches' Sabbath. We explain the significance of the witches' Sabbath on the stock market, what effects you can expect and how you can take advantage of them!
The most important in a nutshell
- Futures and options on shares and share indices expire on the big expiry day, the so-called witches' Sabbath.
- If you trade options and futures, the witches' Sabbath can be important for you: There is a lot of movement in the markets in the phase leading up to the date.
- Equities and other assets are also often subject to above-average volatility at this time
- The big expiry day offers interesting opportunities for traders
What is the Witches' Sabbath?
Futures and options have only one limited duration. The former expire every three months, while options on shares or share indices expire every month.
This results in four times a year for the "Witches' Sabbath": Options and futures expire together on this day and leave the Stock markets go crazy! However, the high volatility and seemingly inexplicable price fluctuations have nothing to do with dark forces.
The "expiry" on the witches' Sabbath means that the stock exchanges are Final settlement prices for options and futures fixed. This determines whether traders have made profits or losses - and how high they are!
Options on shares and indices reach their expiry date every month - this is known as the "minor expiry date". Every three months, this day coincides with the expiry of the futures. This day is referred to as "great expiry day" or witches' Sabbath.
However, the big expiry date is not just an interesting deadline that stock market participants observe idly! On this date and the week before there are strong price movements.
The reason: the institutional Traders try to influence the price in their favor in the last few meters through various measures. The effects are not only felt by options traders. The markets always go a little crazy on Witches' Sabbath.
The witches' sabbath takes place on the stock exchanges on these dates
There is a major expiry day on the stock exchange always on the third Friday of the third month of a quarter. In concrete terms, this means If you trade options or futures, you should mark the third Friday in March, June, September and December of each year in your calendar.
The following dates are scheduled:
| Major expiry dates | |
| 2023 | 15.09.2023 |
| 15.12.2023 | |
| 2024 | 15.03.2024 |
| 21.06.2024 | |
| 20.09.2024 | |
| 20.12.2024 | |
| 2025 | 14.03.2025 |
| 20.06.2025 | |
| 19.09.2025 | |
| 19.12.2025 |
Futures on shares and indices expire on these dates. The However, options are "due" on the third Friday of each month. This is referred to as the "small expiry date". The following dates are scheduled for this:
| Small expiry date | |
| 2023 | 18.08.2023 |
| 15.09.2023 ! Big expiry date | |
| 20.10.2023 | |
| 17.11.2023 | |
| 15.12.2023 ! Big expiration day! | |
| 2024 | 19.01.2024 |
| 16.02.2024 | |
| 15.03.2024 ! Big expiry date | |
| 19.04.2024 | |
| 17.05.2024 | |
| 21.06.2024 ! Big expiry date | |
| 19.07.2024 |
Although the Witches' Sabbath takes place on the same day worldwide, the time may differ significantly due to time differences and different customs!
On the most important European futures exchange Eurex in Frankfurt, expiration is staggered. Options and futures based on the indices of the Swiss provider STOXX will kick things off (12:00). This will be followed by the DAX and TecDAX at 13:00 and the MDAX at 13:05.
Finally, there are futures and options based on individual shares. They expire at 17:30.
| Big expiry day on EUREX | |
| 12:00 p.m. | STOXX indices |
| 1:00 p.m. | DAX + TecDAX |
| 1:05 pm | MDAX |
| 5:30 pm | Stocks |
On the enormously important futures exchanges of the USA the big expiry day ("Triple Witching Hour") is kept simpler: Here, all options and futures expire simultaneously at 16:00 EST. Eastern Standard Time" is seven hours behind German time (during daylight saving time) and can be convert well on various websites.
Meaning of the term witches' Sabbath
The world of finance is known for its flowery technical terms and phrases. They reflect over 500 years of stock market history - enough time to create a language of its own! The Hexensabbat, however, stands out as a particularly quirky formulation.
The origin is quite simple: in the early modern era the term still actually referred to witches and wizards. At the time, it was believed that they regularly arranged to meet the devil for a wild party - the witches' Sabbath.
According to the "witch theorists" of the time, this resulted in all kinds of disasters, curses and other damage. Just like hundreds of years ago No logical justification was available for such phenomena, we still often lack an explanation for the effects of the date on the stock markets.
With the use of the word "Sabbath", the Jewish day of rest, the then prevailing anti-Judaism (historical, religiously motivated hatred of Judaism, which seamlessly merged into modern anti-Semitism) into the term.
The witches' Sabbath is therefore a problematic word in several respectsOn the one hand, he uses religious concepts of Judaism in a pejorative way; at the same time, however, he also uses the most persistent conspiracy lies!
This is because wealthy individuals and organizations (professional traders, hedge funds and other "smart money") take part in the witches' sabbath. massive influence on the markets - often to the detriment of the "small investors".
So there are parallels here with the belief that Jewish groups are still "pulling the strings" in the background. Financial markets, politics and the like are under the control of the Illuminati or a Jewish world conspiracy ...
Successful traders are, statistically speaking, very rational and logical people. They must have these bizarre conspiracy lies seem absurd. Nevertheless, one The name leaves a pale aftertaste.
The more objective formulation "major expiry date" or the English term "Triple Witching Hour" appear here significantly less burdened and offer the same meaning in terms of content.
Effect of the witches' Sabbath on the stock markets
It is difficult to predict what effects the big expiry day will have on the stock markets. Seemingly inexplicable phenomena influence prices during this period and have given the Witches' Sabbath its name.
Also The direction in which prices will move on and around the major expiry date cannot be predicted with certainty. However, it is clear that considerable fluctuations are the rule in the phase before and shortly after the date.
This increase in volatility usually begins on Monday of the respective week and peaks on Friday, the actual witches' Sabbath. Fluctuations may still be above average in the following week.
Such effects are also noticeable on the "small expiry date", the third Friday of each month. However, they are significantly less pronounced than on the major expiry date every three months.
Causes: Why the stock markets go crazy on the Witches' Sabbath
The reasons for high volatility and unpredictable price movements during the witches' Sabbath on the stock markets are of course not devils, witches or other supernatural figures. Instead, the developments quite simply.
Institutional traders, investment banks, hedge funds, etc. are using the time in several ways to Optimize profits and limit losses. You use three different options for this:
Influence share/index prices
Options and futures that use shares and share indices as underlying assets depend on their prices. If the price of an asset does not develop in a trader's favor, it is theoretically possible to sell the asset. price by buying or short-selling the share or index.
With sufficient capital, it is quite possible to move the price of a share significantly! It rises through purchases and falls through a Short sale accordingly. Institutional traders often buy on a large scalein order to change the courses in their interest.
If the project is successful, they can maximize profits from their options and futures or avoid losses. And even if the price does not reach the desired value, the difference can often prevent major damage.
Unfortunately, this option is not available to private traders. It is enormous investment is required, to influence share prices in this way: even for shares in companies with a low market capitalization, it takes several hundred thousand dollars to achieve significant price changes.
For large companies, you would need to have several million dollars on hand to influence prices on the big expiration day. Also the Influencing share indices is often more difficultTheir value is based on all the shares they contain.
Accordingly, here too huge sums requiredto change the price.
On the witches' Sabbath, institutional traders influence equities in order to optimize their options and futures; the But the effects go much further! If a company's share price rises for this reason, this can, for example can be misinterpreted by laymen as a stock market signal.
There may then be further buys/sells by other traders - a real Domino effect that can even influence entire industries and contributes significantly to the myth of the witches' Sabbath.
Numerous traders even speculate on precisely this volatility and use it, for example, in the Day trading with shares.
Make provisions for practicing on the witches' Sabbath
The Option writer can, when the big expiration day approaches, bThe investor can already foresee whether an option or future will develop positively or negatively. This may indicate that the option will be exercised and the underlying/share must be delivered.
In this case, it can be advantageous to have alreadybefore the actual date with the respective securityto be prepared for the Friday in question. Even a slightly lower price can make a huge difference to the large volumes of institutional traders.
The underwriters (silent partners) acquire the shares in advance. The purchase of large quantities of securities has a corresponding effect on prices and there are increases. These cannot be explained on the basis of company data, the market environment, etc. They therefore contribute to the mysterious image of the witches' Sabbath on the stock markets.
Compensation after the witches' Sabbath
Profits and losses are very close together on the stock markets. If it comes to once Lossesthe market participants are naturally trying to dThese must be offset by new profits. Institutional traders act no differently than private individuals.
So when it comes to the witches' Sabbath negative results, attempts are made to subsequently conclude lucrative trades, options transactions and the like in order to repair the damage. In order to make profits, new positions have to be opened - money flows into the market in this way and causes high volatility.
For many traders - whether private or institutional - the phase after the witches' Sabbath is particularly critical on the stock markets. Professional traders often feel pressure from their superiors to recoup losses from the previous expiry date as quickly as possible.
Private investors, on the other hand, want to close out their losses on their own initiative. In both cases risky trading activities may occur. In any case, in the phase following the witches' Sabbath on the stock markets capital in circulation and creates corresponding volatility.
React correctly to the witches' Sabbath on the stock market
You are probably wondering how you can Making the most of the witches' Sabbath and its effects can. In general, the triple witches' Sabbath on the stock markets is always a double-edged sword: the witches' Sabbath phase is highly interesting and can be quite lucrative; at the same time, its effect is extremely difficult to predict.
Clever traders can nevertheless use the witches' Sabbath to their advantage in a variety of ways. The following tips and tricks have proven their worth in this context:
1. stay calm
Long-term oriented investors and most options traders (especially those who do not want to take excessive risk) should keep calm on the Witches' Sabbath.
The effects of the big expiry day are only of temporary duration - For the most part, volatility returned to a normal level by the following Tuesday.
Under no circumstances should you misinterpret the sometimes drastic price jumps as important market signals! A price change directly before, on or shortly after the witches' Sabbath provides little information about future market developments.
Investors and hobby traders (for example, people who follow a swing trading strategy on a part-time basis) should use the Know the dates of the Witches' Sabbath. This way you can make sure you don't accidentally fall into the trap.
Depending on personal preferences and strategy, it may be worthwhile in this phase to even offer to stop trading temporarily. Once prices have returned to normal after the witches' Sabbath, the usual approach is possible again.
Options traders should have marked the witches' Sabbath in their calendars anyway, as it affects their returns.
2. for risk-takers: take advantage of trends on the witches' Sabbath
The High volatility on the witches' Sabbath enables lucrative trades, also comes with a increased risk Therefore. Depending on your personal risk appetite and preferred strategy, it may even make sense to trade more heavily on the stock markets during the witches' Sabbath!
In particular Approaches that rely on following existing trends are ideal for the Witches' Sabbath. So you can get your money's worth with various swing trading strategies (use the up and down movements during larger trends) on the Witches' Sabbath!
The trend-following strategy, one of the classic Day trading strategiescan ensure success here.
3. volatility products
Volatility is not a value in which you can invest directly. Nevertheless Opportunity to benefit from market fluctuationsas they can occur especially on the Witches' Sabbath, to profit!
Generate various investment products Gains from changes in volatility. The whole Different concepts which are often highly complex but not always successful.
Numerous Fund and ETFs offer investments in volatility. These products are generally suitable for profiting from market fluctuations around the major expiry date.
Because if volatility increases, such assets also increase in value. Pay attention However, when selecting on the strategy and the success story to date of such ETFs and funds. Not all of them are worthwhile!
Although many of the products mentioned do indeed reach relative highs on the Witches' Sabbath, the Caution is advised! The witches' Sabbath remains unpredictable, so that even a short-term investment in a volatility-based asset entails high risk!
4. direct trading of volatility
You don't want to rely on ETFs, funds and the like to benefit from the higher volatility on the witches' Sabbath? Then you can reproduce the procedures of the mentioned products yourself!
Here too Caution advised! The dangers of this approach are enormous. If you are one of the risk-taking traders, the Trading with volatility may be of interest to you.
One obvious option is the VIX, the volatility index the CBOE. It cannot be traded directly, but can be used as an underlying for options or futures!
The VIX does not yet play a significant role in the everyday lives of many traders - even though it is an interesting product! It is suitable for adding to or hedging a balanced portfolio.
The VIX offers a new strategic dimension as it hardly correlates with many common market factors. VIX options are available with monthly or weekly terms. You can around the witches' Sabbath on the stock exchange, to benefit from the high volatility of this phase.
The ideal time to take advantage of the effects of the witches' Sabbath could be to end the short-dated option before the witches' Sabbath. If volatility actually increases around the witches' Sabbath, you will benefit thanks to the long option that is still valid.
The calendar spread strategy is also used in some volatility funds and can bring considerable success. However, there is still a risk here too - the witches' Sabbath is and remains an unpredictable phase on the markets!
Meaning of witches' sabbath and broker selection
At first glance, your choice of broker has nothing to do with the witches' Sabbath - after all, the options expire without any action on your part. Nevertheless, the Choose the right provider to benefit enormously from the witches' Sabbath!
Especially the Your broker's product catalog is crucial to your success. It starts with such obvious points as the Absence of options trading: So you can the neobrokers, which are currently springing up like mushrooms, are generally not at all no options or futures offer.
They usually only offer a few shares and ETFs. You are therefore excluded from many volatility products and the possibility of VIX options and calendar spreads are excluded.
It shows once again that the choice of broker is an important factor. For comparison: while some brokers on the German market offer fewer than 3,000 shares, CapTrader shines with over 1.2 million available securities!
In addition, the Your broker's conditions are an important factor for success on the Witches' Sabbath. The Options trading on the US stock exchange CBOE is possible with CapTrader from as little as 3.50 dollarsYou can trade German options from as little as 2.00 euros!
This gives you extremely favorable access to the useful VIX options and thousands of other products. This makes it easier for you to prepare for the next witches' Sabbath on the stock market and significantly reduces your costs!
CapTrader can do that:
Options trading in over 15 countries with favorable prices starting at 2.00 Euro (Germany) or 3.50 Euro (USA) per option with professional software - CapTrader is the first choice for options traders for good reason!
Conclusion: Don't ignore the witches' Sabbath on the stock markets!
The Witches' Sabbath takes place on the stock exchange always on the third Friday of the last quarterly month (March, June, September, December). On this date vThis includes options and futures that use shares or share indices as the underlying.
Many institutional traders make every effort to improve their positions shortly before expiry: they buy, sell or take advantage of a Short saleto influence the price of shares or even an entire index.
The result: Unpredictable and seemingly inexplicable price changes, which can affect options, futures, but also shares and entire markets! In particular a Rising volatility is the rule. The Witches' Sabbath got its name and reputation from these mysterious developments.
Long-term oriented investors are well advised to do so, largely ignore the witches' Sabbath. You should be aware of its existence so as not to inadvertently misinterpret price changes in this phase as long-term indicators.
However, as everything is back to normal just a few days after the witches' Sabbath, the No special adjustments to your own strategy necessary be. However, the situation is different for option traders!
If you are active in options or futures trading, the witches' Sabbath (major expiry date) and the minor expiry date (monthly, expiry of options and futures that are not based on shares and share indices) are the most important expiry dates. Important dates for you.
It is even possible, through VIX options or a calendar spread strategy to profit from this date! However, the witches' sabbath remains notoriously unpredictable; therefore, such procedures are also associated with a serious risk!
