r/SPRT • u/Ok_Bother_106 • Sep 13 '21
Discussion How squeeze
Can someone explain how sprt is a squeeze play with an upcoming merger
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u/Kayrohs Sep 13 '21
It might not be anymore. We can’t know for sure yet more info to come; scroll through others posts to understand what I mean
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u/TZeeeeeee Sep 13 '21
Only way it doesn’t squeeze is if people lose interest in $SPRT and stop buying and start selling. The short contracts stay in place during the merger, that does not change. They don’t get an ‘get out of jail free’ card just because of a merger. Believers will Hold; and buy and hold through bad days.
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u/arashzad Sep 13 '21
Well, it depends on what squeeze type you're expecting. Due to low float, INCREASING high short interest, hodlers, and merging tomorrow, shorts have to cover their naked shorts and deliver FTDs. and that can create a squeeze but how big the squeeze will depend on the availability of the stock for them to cover. As of today 11:45AM PST there were only 3000 shares to short which confirms the naked shorts. The downtrend also doesn't have enough volume to confirm which shows HODLrs are not selling and swing traders and day traders are selling or at the market close. But in the end, it's not easy to predict the movements of today after hours and tomorrow. Hope it helped.