Hey trader,
Cleveland-Cliffs just got squeezed on a nine-delta print.
Someone bought over 10,000 call contracts across the $10 and $11 strikes for April 24 expiration. The $10 tranche filled and the stock barely budged.
Then the $11 block hit at 10:14 AM, and CLF popped on volume within minutes.
What the Prints Tell You
The Console flagged 5,000 call contracts bought at the $10 strike for April 24 expiration. Fill location confirmed the trade as a buy.
A separate wave of buying hit the $11 strike in the same session. Blocks of 1,470 and 2,200 contracts filled alongside additional orders, pushing total volume at that strike toward 10,000 contracts.
The put side saw approximately 3,300 contracts bought at the $7.50 and $7 strikes. Call volume outpaced put volume by roughly three to one.
That ratio tells you where the institutional conviction sits. The larger capital is positioned for upside.
How a Nine-Delta Print Moved the Stock
The $11 strike carried a delta of nine when the largest block filled at 10:14 AM. Market makers who sold those calls immediately began buying shares to hedge their exposure.
That hedging produced a visible price spike on CLF's intraday chart. The timestamp of the fill and the timestamp of the move aligned.
A nine-delta position requires only a small hedge today. If CLF moves toward $10, the delta on the $11 strike climbs toward 25, and at $11 it approaches 50.
Each dollar higher forces market makers to buy shares in increasing quantities. The hedging requirement accelerates as the stock approaches the strike.
With 10,000 contracts sitting at $11, the mechanical buying pressure at those levels becomes significant.
Why Short Interest Compounds the Pressure
CLF's float carries 10% short interest. That creates an additional layer of buying pressure if the stock begins to rally.
Short sellers must purchase shares to close their positions as the price moves against them. When that buying overlaps with market maker delta hedging from the call prints, the two forces compound into a single directional push.
A move through $10 would trigger hedging on the call inventory and short covering simultaneously. That combination is what produces the fast, sharp rallies characteristic of gamma squeezes in stocks with elevated short interest.
The institutional call buying also creates a target with gravity. As CLF approaches $10, the delta on those 5,000 contracts accelerates, drawing more hedging activity into the stock.
The $11 strike adds a second layer of pressure just above.
How to Structure the Trade
The institutional prints target $10 and $11 at the April 24 expiration. A spread at the May 15 expiration captures the same thesis with additional time through earnings on May 1.
- Buy the CLF May 15 $9 call
- Sell the CLF May 15 $11 call
- Spread width: $2
- Cost: Approximately $0.43
- Target: $0.80 (approximately 85% return on the spread)
- Max risk: $0.43 (the debit paid at entry)
- Direction: Bullish
- Catalyst: 10,000+ call contracts at $10 and $11, 10% short interest, confirmed intraday gamma squeeze, earnings May 1
CLF does not need to reach $11 for the spread to produce a return. A move to $10 pushes the spread toward $0.80 as the lower strike gains intrinsic value.
The May 15 expiration gives you the full window through the earnings report. If the position is profitable heading into the announcement, close before the event.
If the position is underwater, hold through earnings and let the catalyst work.
What the Console Is Tracking Now
The Block Hunter Console flagged the 5,000-contract block at $10 and the wave of buying at $11. Fill location confirmed all major prints as buys.
The intraday squeeze at 10:14 AM showed that market maker hedging is already influencing CLF's price at a nine delta. As CLF moves higher, that number climbs and the hedging pressure compounds with short covering from 10% of the float.
The institutional inventory is built and the short interest adds fuel. The spread gives you the structure to position alongside that conviction for 43 cents of risk.
See exactly how Block Hunter catches institutional positioning before the crowd catches on.
Brandon Chapman, CMT
Creator of Ghost Prints