Quadruple Witching, Tax Day, Crypto, And Rolling Returns
This week is quadruple week (quadruple witching day on Friday) and happens only four times per year. We have previously covered this in a separate article:
We would like to mention that the other 8 months of the year also have option expirations weeks:
If you’d like to know the performance of the options expiration day in particular, please read our take in this article:
We have also covered the options expiration week in the EU markets (DAX, Bund, and Euro Stoxx 50).
Does Tax Day affect the stock market?
Tax Day is in April, and still far away, but we made some backtests to see how the stock market performs around that day:
Rolling returns:
What are rolling returns and how do you calculate them? What have been the rolling returns for S&P 500?
Cryptocurrency trading strategy:
The crypto market is a relatively new asset class but is gradually getting more and more mainstream even after many “busts”. Even famous traders and investors like Paul Tudor Jones and Ray Dalio have invested in Bitcoin.
However, the data is limited for proper backtesting, in our opinion, and we can expect the crypto market to change over the coming years.
Nevertheless, we made a number of backtests:
Weekly volatility strategy:
VXO is discontinued but the weekly volatility strategy below might give you some trading ideas:
S&P 500 strategy:
We end the newsletter with a strategy for SPY and SP 500:
