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      $7 Trillion in US Options Set to Expire in Major Market Event

      On Friday, approximately $7 trillion worth of US options are scheduled to expire, marking the second-largest triple-witching event on record. This expiration represents about 25% of the total open interest in the US options market, according to data compiled by Citadel Securities. The only larger event occurred during the June expiration earlier this year.

      Triple witching refers to the simultaneous expiration of stock options, index options, and futures contracts, which occurs four times a year on the third Friday of March, June, September, and December. The $7 trillion figure reflects the notional value of the underlying assets tied to these options contracts, rather than the cash changing hands. Citadel's market-intelligence team noted that around 60% of the expiring volume is expected to settle or roll at the market open, potentially impacting market liquidity.

      Market analysts suggest that this significant expiration could lead to a volatility reset. As options positions roll off the board, the stabilizing effect that dealers have when holding large options positions may diminish, leading to increased market fluctuations. Citadel Securities has adopted a tactically bearish outlook for the end of September, citing both the mechanics of options expiration and historical trends that typically see weaker market performance during this period.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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