This Rally Has an Expiration Date

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.

More from TheoTrade

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How Two Lines on a Weekly Chart Called Last Week’s Reversal

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