The Good Witch

Triple Witching, Illiquid Options & Food for Thought

Happy Friday, folks!

Not much movement in the market today. SPY was down just 0.25%—a pretty uneventful close, especially for a triple witching day. That’s the quarterly expiration where bonds, equities, and index futures all expire at once (March, June, September, December). Usually, that brings volatility… but not this time.

For me, monthly expirations like today are ideal for rolling covered calls and cash-secured puts, especially in stocks without weekly options. It’s when the long-term setups come due, and that creates plenty of opportunity.

Now, when I trade less liquid options, I am often asked: “Doesn’t that wide bid-ask spread hurt you?” Not if you’re strategic. I pick my price and let it come to me. When closing, I usually let it expire—even if that means assignment. Rolling some of these just doesn’t make sense with the added spread costs.

And if I do get assigned? No big deal. I can switch to cash-secured puts, which are synthetically similar to covered calls—just flipped around. If I want to get a little creative, I might even pick a lower strike and aim for some favorable movement.

Just a little options insight to kick off your weekend. See you next week.

#OptionsTrading #CoveredCalls #CashSecuredPuts #TripleWitching #WealthBuildingWithOptions

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