55,000 Puts Hit the IWM While the VIX Sits at 20
By Brandon Chapman, CMT
Hey trader,
The S&P 500 is trapped in a box between 6,800 and 7,000. Most traders see that range and assume nothing is happening.
They are wrong.
Underneath the surface, someone bought 55,000 put contracts on IWM yesterday in a single print. The trade targeted the $256 strike for March 20 expiration.
That is not a retail trade.
The VIX is sitting at 20 without a corresponding selloff. Skew ticked up to 146, a level that reflects extreme institutional hedging activity.
Retail is buying. Institutions are selling. Insiders are selling.
The options market just priced in a level of risk that the stock market has not yet delivered.
Today, we break down what the IWM print means mechanically.
We'll also take a look at why the VIX is elevated in a sideways market, and how 80,000 contracts at the SPX 6,900 level create the conditions for the next directional move.
Click Here to Continue reading.
You can avoid the trade setup where most traders get trapped.
The squeeze trap. It happens when a short squeeze gets started, only to evaporate. Miserably.
A gamma squeeze play can be great. The Ghost Prints Surveillance Console lit up opportunities on KSS (375% in 13 days), PLUG (206% in 5 days), and on VFC (100% in just 24 hours).
Of course you want to find these excellent opportunities.
Along the way you need to skip over the pit of despair, the trap waiting to suck you in.
Monday at 2PM EST, I'm going LIVE to show you EXACTLY how it works.
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