Buy into the short squeeze.
THIS IS NOT A NEW IDEA. HEDGE FUNDS HAVE BEEN DOING IT FOR DECADES. Look at Tilray, OSTK, GSX, GME, Blue apron holding. All short squeezes. Many more that I haven't heard of.
What's the idea? Market thinks it's so bad that's why everyone is shorting it. But insiders are buying? Because they know better and the stonk is undervalued. It's at a 52 week low and short interest is still so high. Shorts are going to have to buy back in, elevating stock price, at least temporarily. We play this by buying long dated call options just in case. Look for unusual options volume (call volume), it will be interesting to see if other people think the same (short squeeze.)
Remember key components:
-High short interest
-Insider buying (not one guy, but multiple people to solidify bullish position.)
-52 week low. It can't go lower, can it? Shorts have to buy back in, crowding exits.
For those of you less inclined: https://finviz.com/screener.ashx?v=111&f=sh_insidertrans_pos,sh_short_o20,ta_highlow52w_b40h&ft=4
I will show some examples to concretize this idea so you really understand it/ believe it. Also for myself too. Follow my trades (if I make any.)
Remember, these are only quantitative facts, we need qualitative catalysts for this to really work. Like Ryan Cohen owning 10% or Michael Burry taking a position. We got to look for Form SC 13 G or D filings.
This is extremely unrefined, many more metrics to look for like liquidity (low volume, wide bid-ask spreads), high insider ownership. Many more, I just can't remember. I will update it the more I do it.
THIS IS NOT INVESTMENT ADVICE.
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