$7 Trillion in Options Expire Today—Here's Why Stocks Are Wobbling

Stocks struggled on Friday as a wave of options contracts worth $7 trillion expired. At the same time, bond yields climbed higher. The expiring options—known as "options expiration"—can cause sharp, sudden price moves. That is because traders must buy or sell large amounts of stock to settle their contracts. The combination of rising bond yields and heavy options activity kept markets restless through the final stretch of a busy week.