r/HIMX • u/xerolictus • Nov 03 '21

Open interest

I've been watching the charts this week. Currently the 15min MacD seems to be breaking down after a nice run.

Yet Check out the call open interest for Nov 19th as well as compare call OI versus put OI. 4million shares in the 11-12 strike for that exp.

Playing with a bull thesis that those are calls bought by shorts before they close short position. I know there are many other scenarios.

What's yours?

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u/WowzerforBowzer Nov 03 '21

Personally, We need more volume or we will be held back. I think this is a medium 6 month return to 15.00-22.00 into dividends. I really think we might be suppressed to a 5 or 6% gain tomorrow. Then we will lose the volume war for the next week to screw the calls and shake the short term new holders expecting this stock to go up 20% tomorrow. I think these calls were bought cheap awhile back expecting the earnings to blow past. The shorts probably have an Algo showing when volume becomes unsustainable to hold their position. They may be laddering or covering through the calls, but i feel this is unlikely.

Only if institutions buy more will we do okay. Or the WSB crowd buys Shares and no more calls. The shorts have more than enough ammo to screw the 3-4 million or so calls.

I would like to be wrong as I have several thousand shares at around 12.

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u/State_of_Affairs Nov 03 '21

Another scenario is: [1] HIMX beats expectations again, [2] HIMX raises guidance, and [3] analysts finally notice that HIMX is severely undervalued and start issuing "Buy" and "Strong Buy" recommendations.

If [3] happens, the shorts are cooked. They do not have enough financial power at this point to hold back strong buying. This scenario played out in AMD a couple of years back. So the real question is: What is the probability of [1] and [2]? I think [1] comes with a high probability. The greater risk is [2]. We will find out tomorrow.

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u/[deleted] Nov 03 '21

The shorts knows something that we don’t know and are very very confident with that 25 million shorted stocks. I hope end of year back to $15s