Wall Road is bracing for a triple witching, which might trigger market volatility. Yahoo Finance’s Julie Hyman joins Wealth! to elucidate the time period and what it might imply to your portfolio.Triple witching is the expiration of several types of contracts, similar to inventory choices, inventory index futures, and inventory index choices contracts. This happens on a quarterly foundation on the third Friday of the month.In keeping with varied estimates, the market might see $4.8 trillion to $5.5 trillion value of contracts expiring within the day’s session, inflicting a major uptick in quantity. Nonetheless, particular person buyers not concerned within the choices market ought to stay largely unaffected.For extra professional perception and the newest market motion, click on right here to look at this full episode of Wealth!This publish was written by Melanie RiehlVideo TranscriptOur prime story in the present day for the markets.Wall Road racing for a triple witching right here to elucidate what that’s and whether or not or not it impacts your portfolio.We have Yahoo Finance’s market domination.Co anchor Julie Hyman.Hey, Julie.Hey, Brad.Nicely, witching sounds spooky, proper?Um, and that is as a result of it’s named after the type of witching hour, the wee hours of the night time when no good issues occur.However on this case, it isn’t very scary, proper?So let’s get to what triple witching is right here.It is the expiration of several types of contracts right here.So triple witching, which we have now in the present day.You see the expiration of inventory choices, contracts, inventory index futures contracts and inventory index choices contracts we used to have quadruple witching, which was additionally inventory choices futures contracts.However these do not actually commerce within the US anymore.Now this occurs on the third Friday of each month the place you simply get the inventory choices, after which we get the triple on a quarterly foundation on the third Friday of the month.So that’s what is occurring in the present day, and in response to varied estimates, we might get wherever from 4.8 to $5.5 trillion value of most of these contracts which might be expiring in the present day.So let’s dig slightly bit extra into it by taking a look at an actual world instance of one in every of these contracts invidia NVIDIA the second most act inside this universe of those choices contracts right here.And so there’s a number of open curiosity that’s open contracts.Right here, uh, on NVIDIA.This is only one that we decide that is expiring in the present day.That is the $140 name choice.Plenty of open curiosity and greater than 145,000 contracts.Right here.You possibly can final purchase this the final time we checked for 2 cents.So for 2 cents, you have got the best to then take possession of 100 of those NVIDIA shares at $140.Story continuesHowever, if by the final tick of the day in the present day the inventory just isn’t at $140 and ultimately verify it wasn’t.Actually, yesterday we noticed it attain 100 and $40 after which again off from that degree.Then this This expires and also you get nothing.It is nugatory.Nonetheless, if by some likelihood the inventory rose to $140.At the moment, you promote this contract doubtlessly a revenue, otherwise you would take supply of these.All of this can be a sophisticated manner of claiming that when persons are making these varied choice buys and trades that it creates a number of offsetting strikes out there.Both you are taking supply of the shares, and that creates an uptick in quantity out there.Or possibly you are doing an offsetting commerce over there, which additionally creates extra quantity out there.So all of that is to say, you see an enormous uptick in quantity on a day like this.Not essentially volatility, possibly slightly little bit of volatility on the margins in a person inventory.However general, an enormous uptick in quantity general available on the market in the present day between these index choices and futures after which the person inventory choices.So, Brad, what’s the backside line for you, the person investor in the present day?In case you’re not within the choices market, in all probability not a lot.And should you’re not knowledgeable investor, in all probability not a lot in order that’s one thing to bear in mind.You would possibly hear a number of dialogue about which the impact it has right here, however for many type of lengthy buyers, most on a regular basis buyers who’ve your cash in your 401k and you are not doing a number of particular person day buying and selling.There’s not essentially going to be a huge impact for you, all proper.No sorcery, simply portfolio and choices technique right here.Thanks a lot, Julie.Admire it.