Triple Witching Day

Today is a Triple Witching Day - "the third Friday of the month that ends each quarter. It marks the simultaneous expiration, at the close, of stock options, index options and index futures." Typically, there is an increase in volatility of the stock market on such a day.

But what is more interesting is that the Triple Witching Day coincided with an overbought market.

• The DOW Index is now at the 38.2% Fibonacci retracement level and hovering at the Nov 2008 Low level (now become a resistance).
• The S&P500 Index is now at the 50% Fibonacci retracement level and hovering at the Jan 2009 Low level (now become a resistance).
• The Nasdaq Composite Index is now at the 61.8% Fibonacci retracement level.

Unless there is good news, it is more likely that the market will close lower today as traders may not want to hold their positions over the weekend and would also like to take profits after a good run.

I have already closed my SPY Bull Put spreads. My naked sold Mar 7.5 and 5.0 Puts for STP are still in play and are performing well so far. I have added GS Puts recently.

Depending on how the market behaves tonight, I might leave a set of fresh Bear Call Spreads expiring 31 March overnight.

Cheers !

PersianCat (Millionaire-in-progress)