This time, the main force of the market correction is Apple and Tesla.
Although both are pullbacks, Tesla and Apple short methods are different. Tesla mainly sells CALL options: $TSLA 20240308 205.0 CALL$ $TSLA 20240322 200.0 CALL$
Apple mainly buys PUT options, and these option chains have unilateral buy orders: $AAPL 20240315 167.5 PUT$ $AAPL 20240419 155.0 PUT$ $AAPL 20240517 150.0 PUT$
Which is more serious, so get ready for a big correction.
The $iShares Russell 2000 ETF(IWM)$ has a bad news and a good news: The bad news is that the $IWM 20240419 196.0 PUT$ buy direction traded 70,000 lots, the good news is that the other leg of this order is to close the $IWM 20240419 192.0 PUT$ . That is to say, there are institutions that expect there may be large volatility in the near future, so in order to do protection measures to buy 70,000 put options, but because the chip & pancake rally is fierce, the market is all the way up, so the institution then raised the target price.
Looking at the first heavy stock, I think this order is 80% in line with SMCI to go. But SMCI iv is too high, the week 1600 call option iv even as high as 200, it is not easy to start, Gu chose the second choice iwm bet a wave of pullback.
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