Quote:
Originally Posted by cnewby
So whats the risk in buying this morning, then selling this afternoon? May it fall today?
|
Nothing is risk free, and I laid out some of the possible scenarios.
I'm into my shares for free after trading swings, so I have no risk and will hold until a squeeze happens. If this drops to $0 a share I still made a decent sum already so I'm in a different boat.
As of right now the Volume on this stock is 35M shares traded. The short shares this morning were somewhere between 60M-70M shares. The company I've been trusting has it at 71M, but obviously they could be wrong.
Even if every single trade was a short covering, they're still underwater and still need to cover. I don't think they've even begun to cover as I watch the bids come in. No gigantic bid is coming in, so for now I think some are just trying to hedge. A lot of the buys and sells are guys just swing trading the dips.
When they do attempt to cover, you will see this thing rocket in price even higher. If they haven't covered by Friday, their short % just became even higher as those shares are allowed to go to the options if the people who placed the "bets" want to exercise.
I would never tell you to buy or sell. We all have different goals in life and different tolerances for risk. I'm the most risk adverse person in the thread, and I'm holding my shares currently and will sell when a real squeeze happens. Right now it looks like it's just brokerages covering the option contracts and preparing for every single contract to finish ITM. I'd just say that from where I'm sitting the squeeze on the shorts hasn't started yet.
We're close to the squeeze though. Currently only 30,000 short positions available at 49.4% interest. Yikes.