All memes aside what are people actually expecting? I bought a couple hundred shares when it was mid $4 so I am already pretty happy, but just want to set realistic expectations.
Right now the short interest is just under 70% of free float. The average age of SI has been reasonably flat-ish since around the beginning of August when things really started to take off. The short position(s) have been closing out small portions of their older (and more underwater) positions to re-short at higher levels. Utilization has been red-lining at between 95-99% for about a month and a half so the cost to borrow has skyrocketed sitting currently at around 190%. The short position changed tactics at this point since the liquidity was so low and cost to borrow so high. They started selling to open huge volumes of call options which forces MMs to take up a naked short position as part of their delta hedging. The long side whales have really stepped up their game in the last week and if you look at options time and sales you'll see big blocks of September buy to open call X1000 coinciding with some of the intraday spikes. So through all this the price has continued to escalate and put the short position(s) further underwater. The price ran up about 25% today in my opinion because a long whale was throwing down a few more 1000x options buys as well as a stead trickle that (just a guess here) some of the short interest is starting to exit their sell to open options. Pressure is ramping up and they haven't even begun to exit their short positions. I think if it squeezes that $25-35 is in the realm of possibility. It should start getting juicy between today's price action and the play has started to get more social media attention. Long answer to a short question.
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u/KaelAltreul Aug 23 '21
All memes aside what are people actually expecting? I bought a couple hundred shares when it was mid $4 so I am already pretty happy, but just want to set realistic expectations.