Don here...
Brandon Chapman just called the S&P 500 a caged animal. And he thinks when it breaks, it's going to the downside.
The market is locked in a 200-point volatility box between 6,800 and 7,000. That's a 3% range it keeps bouncing through, back and forth, with no resolution. By end of February, something has to give.
Brandon used Ghost Prints to see exactly what smart money was doing inside that range. On February 13th, the surveillance console flagged 15,000 put contracts being bought on XLU, targeting $42 by June 18th. That's not a hedge. That's a trade with a target and a timeframe.
He acted on it. In tonight's video, he breaks down both trades he closed today:
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Brandon bought a 46.50/44.50 put vertical on XLU on Friday and closed it today for a 37% gain in two trading days.
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He also put on an SPY put spread targeting 6,887, closed it for an 80% gain in about 20 minutes.
He's not the only one positioning to the downside. Brandon flagged significant put buying in QQQ and IWM, with gamma building below the market. If the S&P 500 holds the box, that gamma quietly expires. If it breaks, the gamma squeeze accelerates the move lower.
The option skew on the S&P 500 ticked up to 140 yesterday. The market is paying a premium for downside protection at elevated levels.
Brandon also walked through a setup in SLV, where 11,000 call contracts were bought at the 83 strike and sold at the 93 strike for a June 18th expiration.
He outlined a simpler way to trade that same thesis with a 71/73 call vertical costing roughly 80 cents, targeting a move to 75.
His overall message: the volatility box rewards smaller, faster gains right now. Take the 37%. Take the 80%. Reset. Do it again.
Click here to watch Brandon break down the volatility box and the exact trades he made today.
To your success,
Don Kaufman
Chief Market Strategist, TheoTRADE
P.S. I stopped trading daily signals. Then my win rate hit 100%. I built an Indicator that only fires 10-12 times per year. It measures the exact moment selling pressure exhausts itself and structure shifts. No noise. No chasing. Just the turn. Last year it flagged 10 reset windows. 8 called the bottom. Every trade I placed during those windows closed profitable. Tomorrow at 1 PM ET, I'm going live to show you the full system. Free, no replay.
👉 Join me here
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