Brandon Chapman just laid out why today’s market strength is borrowed time.
Five Mag Seven names report Wednesday. The Fed announces the same day.
The options market is sending a warning that price charts completely miss.
Brandon is drawing a direct parallel to last October 29th. That marked the final peak before a 10% S&P 500 correction and a 20% correction in NVIDIA.
The setup is nearly identical. The VIX is artificially suppressed as institutions pile into a dangerously crowded dispersion trade.
That trade has until Wednesday to play out. Then the math reverses.
In tonight’s video, Brandon walks through what the options tape is showing right now:
- 75,000 SPY put contracts hit in a single trade today, targeting the May 8th expiration.
- 10,000 SMH put contracts printed across three trades within one second of each other.
- 15,000 XLF put contracts placed on Financials as a downside hedge.
- 9,600 ORCL put contracts bought at the ask in a single print.
Brandon is already positioned in SPY to the downside. He’s watching for the post-Wednesday volatility spike to confirm the reversal.