Thursday, May 15, 2008

Tom Sosnoff - Triple Witching Tips

I've mentioned previously that I switched my brokerage to thinkorswim (tos). I will tell you more about why in a full feature post, but for now, I want to share with you one of the many reasons. I've been listening to their free Wednesday chats during my commute and am picking up interesting bits of market knowledge from Tom Preston, Tom Sosnoff, Joel Blaum, Tim Knight, and other contributing members of the thinorswim family.

Tom Sosnoff tends to bring in fairly advanced topics when he presents on the Wednesday chats and the subject of Triple Witching is a rich point of departure. What is Triple Witching? It's a magical time that comes 4 times a year. I like investopedia's definition: An event that occurs when the contracts for stock index futures, stock index options and stock options all expire on the same day. Triple witching days happen four times a year on the third Friday of March, June, September and December.

Tom Sosnoff has talked about triple witching on a few chats throughout the archive but so far the September 12 chat (download the mp3) is the densest I've heard. He covers many ideas about volatility and how to strategically position yourself to place the odds in your favor at a triple witching expirations. I find the information Tom Sosnoff presents very interesting and worth the time it takes to grok. I'm excited about this particular chat session even though I haven't heard all 15 points he presents yet. I've only heard the first 20 minutes or so, but recommend having a listen if you're prepared to delve into such dense subject matter.

The complete archive of Wednesday chats is available by clicking here.

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