Record $6.3 Trillion Options Expiry Triggers Market Volatility

• Lyla Velez
• September 19, 2025
• Market
• 0 Comments

A staggering $6.3 trillion in stock and index options contracts are expiring today, September 19, 2025, leading to increased market volatility due to this “triple witching” event in the United States.

This unprecedented expiry could drive significant market volatility, affecting dealer strategies and possibly influencing related crypto markets, due to the size and timing of the event.

Event Overview

This record-breaking $6.3 trillion in stock and index options expiry on September 19, 2025, marks one of the largest “triple witching” events. Such occasions occur quarterly and involve the concurrent expiration of various contracts, potentially leading to market turbulence.

Institutional Participants

Primary institutional participants include large U.S. exchanges like CME and CBOE, along with major financial players like Goldman Sachs and JPMorgan. Their strategies, such as JPMorgan’s significant collar strategy, could see pivotal shifts if market positions change based on key strike prices.

Market Dynamics

The event is anticipated to lift the recent pinning effect seen in markets, where options positioning suppressed volatility. There might be a marked uptick as hedges unwind. This could impact market liquidity as it coincides with a short trading week.

Gamma exposure dynamics may change; dealers hold positive gamma positions before expiry, cushioning volatility. After expiry, flipping to negative gamma could intensify volatility, particularly if the S&P 500 shifts outside critical levels near 6,200 or 5,800.

Historical Context

Historically, triple witching days contribute to massive market volatility spikes. On these occasions, volatility can increase by 30–50%, reshaping stock and crypto markets. As Brent Kochuba, Founder of SpotGamma, noted,

Data from SpotGamma showed options tied to about $6.3 trillion in stocks and equity indexes are due to expire. That should place the September expiration among the three largest triple-witching events ever recorded.

Impact on Crypto Markets

The crypto sector might also experience collateral impacts due to its correlation with traditional markets. BTC and ETH often follow similar trends during such times, creating secondary volatility in DeFi markets.