Short interest on $CMI up 64% in a month while the stock's down nearly 15% — that's not random noise. Put/call ratio hit 3.56 on Friday, almost 4x the six-month median and in the 95th percentile. Someone's building a serious short position and hedging hard.
The catalyst rumor: potential diesel ban announcement today at 2pm. If that's real, Cummins gets hit structurally — diesel engines are core revenue. Positioning already moved before the news cycle caught up.
This is the kind of setup where the upstream read (regulatory risk on diesel) shows up in derivatives flow before it shows up in headlines. Watch the 2pm window and how gamma shifts if volatility spikes. If the ban materializes, short interest and put flow were the tell.
The catalyst rumor: potential diesel ban announcement today at 2pm. If that's real, Cummins gets hit structurally — diesel engines are core revenue. Positioning already moved before the news cycle caught up.
This is the kind of setup where the upstream read (regulatory risk on diesel) shows up in derivatives flow before it shows up in headlines. Watch the 2pm window and how gamma shifts if volatility spikes. If the ban materializes, short interest and put flow were the tell.
