The four witch days refer to the dates when stock index futures, stock index options, stock options and stock futures expire and settle at the same time. Among them, stock options and stock index options are settled on the third Friday of each month, and these four types of assets are settled simultaneously on the third Friday of March, June, September and 65438+February.

Four witch days are similar to three witch days, which means that three varieties in the above four markets expire and settle at the same time, which can be compared with the definition of two witch days.

Stock options:

Option is a derivative tool, which means that its value is based on basic securities such as stocks. The option contract provides the buyer with the opportunity to complete the transaction of the underlying securities at a preset price (called the exercise price) on or before a specific date, but the buyer has no obligation to complete the transaction. If a customer is bullish on a stock, he can buy its option to speculate, which is called a call option.

If the stock price is higher than the exercise price on the expiration date of the option, investors can exercise or convert it into shares and cash out. If the stock price is lower than the exercise price on the expiration date of the option, investors who buy put options can profit from it. Options expire and settle on the third Friday of each month, and you need to pay a premium to buy or sell options.