Put Open Interest At Highest Levels Ever
(history says bears will win???)

ETFs like $SPY, $QQQ, and $XLE have the highest open put interest ever with the next closest reading going back to August 2011. We were still drinking lots of bud light back then so we had to check the charts and see what actually happened to the market.

Surprisingly August 2011 was the top and the bears won with $SPY falling 17.97% over 63 days before bottoming in the first week of October.

Could we be in a similar situation now?

Take a look at the open interest for $SPY 7/21 options. The put / call ratio is 2.486 with an insane amount at 400 to 380 and even 370.

The market is at a pivotal point now as we attempt to break through 4200 again. Bears say we need a rotation out of the tech names that are holding this thing up and into other sectors to keep going, Bulls say it doesn’t matter funds are going to chase tech further in fear of missing the rip that keeps going.

We say in 2011 0dte options didn’t exist yet, their impact on the market is not fully understood and this time really could be different.

RIGD REPORTS on $SPY

Yesterday RIGD sent an alert at 12:04 (second period). We took the trade netting a 26.1% return in 20 minutes.

What happened and how?

At 12:04 there was a massive options sweep with 3040 417 calls below the bid for 753k in premium.

An options sweep is a market order where a trader hits multiple exchanges at once to fill the order.

Because the order was filled below the bid, it’s considered a sold position. Selling calls below the bid is typically a very bearish signal.

The price of $SPY was 419.37 at the time, so we bought ten contracts of the 419 put.

Over the next 20 minutes, SPY moved down 0.17% (just 70 cents!) and our puts crossed into the money.

We dumped them all for a 26.1% return and $155 gain and bought ourselves a nice liquid lunch.

Impact:

When these large option sweeps occur, market makers are forced to hedge their position in order to remain neutral. This means buying or selling shares of the underlying which can move the price up or down.

The problem is it’s nearly impossible to see this activity occur and then take action unless you’re an expert who’s glued to the screen all day.

You’ve heard it before but we’ll say it again… the market is rigged.

We’re building RIGD to highlight this activity and make it easy to take trades based on what the smart money is doing.

The beta will open [ redacted ].

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