Best and Worst Stocks to Own During Triple Witching Week

Core Insights - The upcoming third Friday of the month marks the expiration week for equity options, particularly significant due to the simultaneous expiration of equity options, stock index options, and stock index futures, known as "triple witching days" [2][3] Performance Analysis - Historically, the S&P 500 Index (SPX) has underperformed during triple witching weeks, averaging a loss of 0.47% with only 53% of returns being positive since 2017 [3][5] - In comparison, other expiration weeks have shown slightly better performance with an average return of 0.11% and less than half of the returns positive, while non-expiration weeks have averaged a return of 0.37% with 61% of returns positive [4][5] - More recent data from 2021 indicates that triple witching weeks have averaged a loss of 0.29% with only 39% of returns positive, while non-expiration weeks maintained an average return of 0.38% with 61% of returns positive [7][8] Daily Performance Trends - During triple witching weeks, Mondays have shown a positive trend with the SPX being positive 72% of the time, averaging a gain of 0.14%, while Fridays, the expiration day, have been particularly poor with an average loss of 0.36% and only 22% of returns positive [11][12] Individual Stock Performance - Certain stocks have historically outperformed during triple witching weeks, particularly software companies like Palantir Technologies (PLTR) and Autodesk (ADSK), which have shown positive returns [15][16] - Conversely, stocks that have underperformed during these weeks include many in the real estate and construction sectors, such as Martin Marietta Materials (MLM) and Federal Realty Investment Trust (FRT), with average returns significantly below zero [18][19]