Ok here is the extended thread on $XL I promised.
It is pretty straight forward.
For those that are new to stocks / options (because of the influx of interest due to $GME, $AMC, $SLV, etc), here are some terms you should google:
-Short Interest
-Call option
-Open Interest
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It is pretty straight forward.
For those that are new to stocks / options (because of the influx of interest due to $GME, $AMC, $SLV, etc), here are some terms you should google:
-Short Interest
-Call option
-Open Interest
/1
XL Fleet short interest increased from 50% to 72% in the latest reporting (came out Friday)
That alone piqued my curiosity in the company so I took a position in some Feb calls (in my robinhood account) and will be adding more in my TD account this coming week.
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That alone piqued my curiosity in the company so I took a position in some Feb calls (in my robinhood account) and will be adding more in my TD account this coming week.
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Several days ago, Biden announced that he would be replacing the entire govt. fleet with electric vehicles
reuters.com/article/us-usa…
$WKHS got a massive pump on this news but that was about it.
Who are the other likely candidates? $GOEV and $XL
reuters.com/article/us-usa…
$WKHS got a massive pump on this news but that was about it.
Who are the other likely candidates? $GOEV and $XL
Why is $XL one of the top candidates?
-Partnerships with Coke and Pepsi
-Board of Director members have strong ties with UPS and FedEx
-Management team is very connected in govt. associations for clean energy in wind, solar, and EV
- $XL is focused on transforming existing FLEETS
-Partnerships with Coke and Pepsi
-Board of Director members have strong ties with UPS and FedEx
-Management team is very connected in govt. associations for clean energy in wind, solar, and EV
- $XL is focused on transforming existing FLEETS
Next up, is Open Interest and float. Remember, $XL Fleet only has 8.25M shares of public float. Of that, 8.6% are institutionally owned (i.e. not going to be sold anytime soon)
That means there are roughly 7.6M shares of true float available.
That means there are roughly 7.6M shares of true float available.
At 7.6M shares, it only takes 76,000 call option contracts that are in the money (the strike is less below the current trading price) to lock up the ENTIRE FLOAT. This is very similar to what happened to $GME
So here is a quick table I put together so you can quickly see the Open Interest for call options on $XL 
Notice how the OI spikes MASSIVELY on the C25 and C30, with a decent bit at C20 and C22.5
There are already nearly 40,000 contracts that are In The Money. Locking up 4M shares.
Total, there are over 144k option contracts that have been sold.
There are already nearly 40,000 contracts that are In The Money. Locking up 4M shares.
Total, there are over 144k option contracts that have been sold.
The crux of this comes when $XL hits $25/share. At that point, the contracts that are in the money lock up the ENTIRE FLOAT of $XL.
And that isn't including new contracts that will be purchased on hype as it moves back up.
If this hits $25, it quickly moves over $40 . . .
And that isn't including new contracts that will be purchased on hype as it moves back up.
If this hits $25, it quickly moves over $40 . . .
As shorts cover and new buyers enter the market.
All this needs is a catalyst. And with how clean energy friendly the new Biden Administration is . . . well, that seems like a likely catalyst to me.
I am already in Feb/March calls. Will be adding to position next week.
All this needs is a catalyst. And with how clean energy friendly the new Biden Administration is . . . well, that seems like a likely catalyst to me.
I am already in Feb/March calls. Will be adding to position next week.
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