By Medha Singh

(Reuters) – Single stock options worth approximately $1.28 trillion are set to expire Friday. This could drive sharp market movements, as Wall Street winds down a volatile week, according to Options Solutions analysts.

According to an investment advisor based in Chicago, nearly 40% of all open interest is due for expiration when options are exhausted.

Investors contemplating whether equity investments are bargains, after Nasdaq plunged into correction territory last week, saw the major U.S. stock market indexes end sharply lower Thursday.

Steve Sears from Options Solutions stated, “The” expiration of options could pose a risk because it’s so large. Investors could adjust expiring put and call expiring puts more effectively.

Bespoke Investment Group analysts noted that U.S. stocks experienced intense selling at the end this month. They also pointed out that January has been one of the most disappointing months in recent history.

Kochuba, SpotGamma’s options analyst service, stated that the net options delta due to expire Jan. 21 will be over $2 billion.

Apple Inc (NASDAQ). Microsoft Corp SpotGamma stated.