July 9th deadline could trigger massive bank selloff

By Brandon Chapman, CMT

Another all-time high in the S&P… on the last trading day of the quarter.

Window dressing? Maybe.

But I’m seeing something else entirely.

While everyone’s celebrating fresh highs, someone just dropped $400,000 on a single bearish bet against Bank of America. 50,000 put contracts. Expiring July 11th.

Here’s what makes this trade fascinating: It expires BEFORE Bank of America reports earnings on July 16th.

This isn’t an earnings play. This is something else.

And it’s not isolated.

Last week I tracked massive bearish positions in Wells Fargo and Morgan Stanley – all targeting prior lows, all expiring July 11th.

Why July 11th? What happens before then that has smart money betting against the entire banking sector?

Two words: Reciprocal tariffs.

July 9th marks a critical deadline. 

The tariff delay expires, and we could see significant policy announcements that week. I’ve seen this movie before – April 7th, when tariff news crushed banks and sent gold soaring.

Today, gold is already starting to move. Up 1.08% while financials climb 0.87%. That divergence? It’s telling me something.

Here’s what I’m tracking:
• The exact strike prices these big money players are targeting (and why they chose those specific levels)
• How treasury selling could cascade through the banking sector just like it did in April
• The gold trade I just alerted my subscribers to today – and why this could be the start of a major move

Look, I get it. New all-time highs feel good.

But SKEW is still elevated above 130. The potential downside keeps expanding.

All those risks we thought disappeared – Fed policy, tariffs, geopolitical tensions – they didn’t go away. They’re just waiting for a catalyst.

And next week might deliver exactly that.

Tomorrow starts a new quarter.

Nearly 30% of this entire rally happened in just the past 90 days. If you’re going to take profits, this might be your moment.

Before you position for the holiday week ahead, you need to see what these banking options are really telling us.

[WATCH THE Full VIDEO HERE]

Don’t let the new highs fool you. Smart money is preparing for something entirely different.

-Brandon

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