The largest "Triple Witching Day" in history for US stocks has arrived! $5.3 trillion in options are set to expire all at once.

On September 19 (Friday), the U.S. stock market will face the largest “Triple Witching” day in history. This day marks the expiration of three contracts simultaneously: stock index futures, stock index options, and individual stock options.

What will happen?

According to estimates by Goldman Sachs, the options expiring this weekend will reach a nominal value of $5.3 trillion, the highest ever for September. It is said that 90% of these are call options. If these positions are closed, there is a possibility that the significant buying pressure that has been supporting the market could disappear all at once.

How will the market move?

Goldman expects that the rise will continue due to the “gamma compression” effect until the maturity date, but forecasts that it will enter a correction phase afterwards. However, JP Morgan points out that “the decline is a buying opportunity” and believes that the October employment statistics, CPI announcement, and the third-quarter earnings season will create a new upward trend.

Note: The S&P 500 is currently around 6,632 points, setting a new all-time high. It has risen by +12% year-to-date.