In addition to being a summer Friday away from major earnings season, and without any heavily followed economic reports other than consumer sentiment (see chart below from Econoday), today marks the expiration of four types of derivative contracts, or “Witches”
Single Stock Options and Futures, Index Options and Futures.
As we have been written about in our latest newsletter (more coming soon) these derivates contracts, while very useful, have unique characteristics and have grown greatly in popularity over the last few years, leading to more impactful movement on all areas of the capital markets.
It is a good idea to remember if an investor is making transactions today, additional caution may be advised as the “Four Witches” may create unique movements in various areas of the markets.
Consumer Sentiment: Latest results for June 2011 due at 8:55 AM Central
Have a Great Day!