Thread by @TRUExDEMON

Long DD Thread...

The threshold securities list has proven to become a very lucrative method of picking short squeeze candidates. Combining my short exempt theory with threshold stocks has yielded three picks which show immense squeeze potential due to the FTDs against them.

For those who don't know...
Threshold securities are stocks with more that 0.5% of its outstanding shares in Failures-to-deliver (FTDs)

FTDs are a symptom of naked shorting, as well as institutions who fail to deliver in-the-money call options or lent shares that were recalled

Short exempts are a special tool of market makers (MMs) to take a short while a stock is on Short-sale restriction (SSR) or to short without locating a share to borrow.

These exemptions are intended for MMs to survive periods of massive volatility and frenzy buying.

However, recently some apes such as myself have identified that short exempts can and have been liberally abused to short stocks without requiring a locate, allowing MMs to drive massive downward pressure on stocks during SSR and to avoid borrowing while making the market.

In situations where MMs are short a stock, they can use exempts to take the other side of retail buy orders to satisfy the trade without having to find another seller. It is massively profitable for them because they can dictate the price on the spread while doing this.

Meanwhile, short MMs can accumulate shares to borrow for later, allowing them to drive the price down during a sell off. Then, they buy back the stock at a discount and deliver on the FTDs created by all the short exempts they made.

But...

What if the stock doesn't sell off???

You see, every short exempt that was taken without a borrow automatically becomes an FTD because technically it is a naked short. And MMs are only given 6 trading days to settle FTDs.

If they don't, they are forcefully restricted from shorting the stock, halting their trading.

This cuts massively into their profits, so MMs are forced into a prisoner's dilemma of buying back the shares they failed to locate in order to close the FTDs.

This would naturally go against their trading strategy because their net position is short on the stock they must buy.

Add on top of this, the market maker sold a massive number of call options on that stock which would run in the money, forcing them to delta hedge those positions... by buying more stock...

MMs get around this problem and kick the can down the road for a while by borrowing more shares. This is possible because, according to RegSho, you can close FTDs by borrowing shares, but this only lasts so long because eventually these shares run dry as utilization rises to 100%

Oh but it gets worse for them...

If a stock is on the threshold list and stays there for more than 13 consecutive days...

At any time, regulators are able to force the closure of any existing short positions on that stock.

The MM is then forced to buy to cover their shorts...

Well, guess what ladies and gentlemen, you already saw it happen with $GME, $AMC, and most recently with $SPRT.

NOW $BBIG and $ANY are both on the table, with the former closest to squeezing.

$SPRT kicked things off with a massive gamma squeeze following a run up to $8 from its average of $2.50 all year. Shorts underwater were desperate to continue shorting in order to average down their position and put selling pressure on the stock.

It didn't work...

On 8/20, $SPRT calls below $8 expired ITM, forcing a buying frenzy. On 8/23 $SPRT gapped up past $9, putting enough call options ITM to exceed their entire float.

Any org selling calls, when they are assigned, would be forced by 9/17 to deliver more shares than exists.

What followed was a pure gamma squeeze, rendering MMs helpless but to buy shares at such a rapid pace as to force the price to skyrocket past $59 by that Friday before a sell of saw it settle around $26.

But $SPRT isn't done because shorts still haven't covered.

Proof:

There is a pattern that I identified where $SPRT had a huge run up leading to it's 21st day on the Threshold list (8/20), but it was rapidly shorted down just before that Friday in order to push expiring options out-the-money (OTM).

The following Monday however...was too much

Now we come to $BBIG, which has been on threshold since 8/3, making this 24 days on the list as of Friday.

We saw yet another massive push to shove the price down and to try to shake out any paper hands.

Again, we saw an end-of-day rebound for $BBIG after shorts piled on.

$BBIG shorts are at over 300% losses on their positions, and now, once again, a massive portion of the float is ITM on the call options chain. Shit is about to go down...

I'm not setting dates, I'm not a financial wizard, and I'm not a fortune teller. I'm just a computer geek that knows how to use a calculator.

The math is fucking clear.

Shorts are are in deep shit
They can't cover without buying
There are no shorts to borrow
& no shares to buy

On Sept 10th, $BBIG will be finalizing its proxy vote, per their CEO during their latest earnings call.

This proxy will finalize the long awaited merger that has been the catalyst driving $BBIG's price action.

In mere days, this catalyst will FINALLY be realized.

I predicted on May 25th $AMC's gamma squeeze the following week.
I predicted $SENS's gamma squeeze on June 3rd 3 weeks prior.
I predicted $SPRT's gamma squeeze on August 12th before the end of the month.
Now I'm predicting $BBIG's gamma squeeze before the end of September.

You don't have to believe me, but I'm not shilling, I'm not bull shitting, and I'm not fucking leaving.

I'm here to make the market work for me, and I'm here to watch some hedge fund portfolios burn.

Do whatever you want to, but I know what I'm doing tomorrow...

I'm ALL in.