Who Hedges on a Green Day
By Brandon Chapman, CMT
Hey trader,
Institutions are reloading their hedges into strength.
A massive rally in the S&P 500 looks like relief to most traders.
For the desk behind this print, it was a discount on protection.
The Block Prints Console flagged 70,000 put contracts bought on SPY at the $625 strike for April 17 expiration.
The fill landed in a single print while the market was still climbing.
Rallies make puts cheaper. The institution behind this print knows that.
I'm going to show you exactly how that pricing dynamic works, what the diagonal connecting April and May tells you about their expected move, and how to position around $625 where the inventory just landed.
Click Here to Continue reading.
Institutions are not hedging on sell-offs. They are hedging on bounces, when implied volatility drops and puts get cheaper.
The Block Prints Console flagged the moment 70,000 contracts landed on SPY in a single print. The direction, the structure, and the timing were all confirmed before the close.
The Console lit up opportunities on KSS (375% in 13 days), PLUG (206% in 5 days), and VFC (100% in just 24 hours).
See the Console in action and learn how institutional flow detection works.
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