InterestArb

⚠️Investors are hedging against an S&P 500 CRASH at a RECORD rate: Estimated S&P 500 put delta positioning is down to -$70 billion, the most negative since at least the FINANCIAL CRISIS. This means investors are currently holding the largest dollar amount of S&P 500 put options in HISTORY. This even exceeds the 2020 CRASH, the 2022 bear market, and the April 2025 selloff. Wall Street has rarely been this fearful of a market drop.

US bond markets are under serious pressure. The 10Y Note Yield is back at 4.40% and the average 30Y Mortgage is up to 6.38%, up for 4-straight weeks. Just days prior to the Iran War, mortgages fell to the 5%'s for the first time since 2022. The bond market needs serious help.

Bots parse Bloomberg terminal headlines in milliseconds. Human traders vanish entirely during these initial price spikes. Algorithms blindly execute massive block orders on the geopolitical keyword peace and ruthlessly reverse positions on the keyword denial. The $3 trillion swing exposes the terrifying reality of machine driven liquidity vacuums dictating modern price discovery.

300$ silver right? 😂