Traders work on the floor of the New York Stock Exchange (NYSE) as the opening bell rings on December 16, 2025.
Charlie Tribalew | AFP | Getty Images
Wall Street could be in for a volatile weekend as traders brace for Goldman Sachs’ biggest option expiry on record.
According to Goldman, more than $7.1 trillion in notional option exposures are scheduled to expire this Friday, with about $5 trillion related to the S&P 500 index and $880 billion related to individual stocks. December options expirations are typically the largest of the year, but this one exceeds all previous records, the company said.
To put the size in context, the options expiring on Friday represent a notional exposure equivalent to about 10.2% of the Russell 3000’s market capitalization, Goldman said.
This dynamic can lead to volatile trading, especially around high-profile levels in the S&P 500, said Jeff Kilberg, founder and CEO of KKM Financial.
“We expect volume to be well above normal as options traders lock in gains and losses in 2025,” Kilberg said. “However, it appears that a lot of the repositioning has already taken place. $6,800 is a big strike price for the S&P, and after taking the market above that level this morning, we will see if the bulls can defend that level.”
The S&P 500 is up about 15% since the beginning of the year, trading around 6,770 on Thursday.
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S&P 500 year-to-date stock index
While broader markets can lead to higher volume and volatility, some individual stocks with large open interest could see a different scenario. If an option trader who is hedging a position holds a large number of at-the-money options, the activity associated with these expiring contracts may actually dampen price movements rather than intensify them. An “at-the-money” option has a strike price equal to the current price of the underlying asset.
Goldman said that as traders adjust their hedges, prices can gravitate toward frequently traded strike levels, a phenomenon known as a “ping,” which can cause stocks to hover around key levels until the close.
“This situation is often referred to as a ‘ping’ and can be an ideal situation for large investors looking to enter and exit positions in stocks,” Goldman said.
According to the company, stocks with options expiring on Friday that account for a high percentage of normal daily trading volume and are likely to be pinned include GeneDx Holdings, BILL Holdings, Avis Budget Group and GameStop.
