Brandon Chapman just uncovered one of the largest bearish option flows I’ve seen this year. Someone bought 100,000 put contracts on Ford in a single trade on January 6th. Today, they added 88,000 more.
That’s 180,000 contracts in two sessions. The strike price is $10.
Ford has earnings coming up in a few weeks. If the stock breaks through $10, all that bearish pressure creates what Brandon calls a gamma squeeze to the downside.
The Ford trade was just one of several massive prints Brandon flagged in tonight’s video:
- SILJ saw a 30,000 contract ratio put spread with a 2-to-1 ratio, targeting below $37.50. Put volume hit 111,000 contracts, four times the daily average.
- FXI (China ETF) had 57,500 puts bought in one print at the $39.50 strike. This adds to constant bearish buildup over the past week.
- AR (Antero Resources) saw 39,000 call options bought as part of a spread targeting $45 by March 20th, signaling a potential rotation from metals to oil.
The dollar is getting smashed right now. Silver was up 10% at the open before fading. Gold is outperforming the S&P 500.
Brandon points out that virtually all the gains since October 10th have come from dollar weakness propping up the market. The S&P 500 is only up 3.3% since then.
The yen is now the strongest currency in the world. Since the yen is a funding currency for global assets, this breakout could signal a burgeoning credit crisis that reverses the dollar trade entirely.
