Traders are seen working on the floor of the New York Stock Exchange in New York City, U.S., on December 17, 2025. An eventful end to the week is anticipated on Wall Street, as market participants prepare for what Goldman Sachs has described as the most significant options expiration in history.
Options expiration days are routine monthly occurrences on Wall Street when contracts for short-term derivatives conclude. However, this Friday is a 'quadruple witching' day, an event that happens only four times annually, during which options for four different kinds of securitiesâindex options, single stock options, index futures, and index futures optionsâall expire simultaneously.
Goldman Sachs has indicated that more than $7.1 trillion in notional options exposure is set to expire, including approximately $5 trillion linked to the S&P 500 index and $880 billion to individual stocks. December often sees the most substantial expiration activities of the year, yet this event surpasses all previous records.
To comprehend the magnitude, Goldman revealed that the options expiring represent notional exposure roughly equivalent to 10.2% of the total market capitalization of the Russell 3000.
According to Jeff Kilburg, founder and CEO of KKM Financial, this situation might result in unpredictable market movements, particularly around crucial levels within the S&P 500.
"I'm anticipating volumes to surge above the norm as options traders settle their 2025 gains and losses," remarked Kilburg. "While much repositioning has already occurred, 6800 remains a significant strike price in the S&P. We will observe whether the bulls can uphold that level after advancing the market past it earlier today."
The S&P 500 has experienced a roughly 15% increase this year, last noted trading around 6,770 on Thursday.