Thread by @TRUExDEMON

I wanted to give an update on my opinion of $SPRT because I'm getting asked quite a bit.

NFA...

I am still bullish on $SPRT, but at the moment, it's in a consolidation period. The SI of FF is over 86%, and the average short got in around ~$7.15.

They are at a 224% loss.

The problem we currently have is that market makers hedged and either delivered or bought-to-close their ITM options on the chain during the run up when everyone sold their ITM options. The 9/17 call chain only has about 6K calls ITM right now, so not much gamma anymore.

10/15 looks more interesting with 36,232 calls expiring ITM above $23. That's still 18% of the float.

Between the 86% SI and 20% of the float ITM between now and 10/15, $SPRT is still in a supply crisis, and I believe failures to deliver will be astronomical in the coming weeks.

At the moment, the price is basing and establishing a level of support at ~$20-25. I believe it will settle somewhere in the middle.

Shorts are still in trouble.

No position now, as I'm currently tapped out, but I plan to start buying shares and am watching the short exempts.

As with all things in the markets and in life, nothing is certain, and there are no guarantees that this thing will continue to rip, but I do know that short squeezes tend to follow a head and shoulders pattern where the very first shoulder is what people THINK the squeeze is.

Volkswagen, GME, and AMC did the same things.

Shoulder 1: Small run, followed by a small squeeze. shorts pile in
Big dip: People think it squeezed and it's over
Run up the neck: Giant run-up challenging its previous squeeze levels
The head: the ACTUAL squeeze 2-5x the first one

The collapse from all time highs. Falls back to the neck-line and forms a second shoulder

That is a period of extreme volatility, good for day traders, but dangerous for longs, and is the time to switch to short / long-puts.

The collapse brings it back to normal

Currently $SPRT just completed it's run up and dip. The number of shorts still in proves that shorts are still hurting and hoping for a better exit. They won't get one.

The best they can hope for is a 200% loss. Once they realize that, they will start buying calls to hedge

Shorts will inevitably choose an exit strategy designed for survival, but their hubris will make them hold on until SPRT slowly returns to the $40-$50 range over a long consolidation period.

AMC did this too from March - May

Once SPRT hits those $40-$50 levels again, well...

... shorts start shitting their pants.

The bull run back to $40-50 will take a while, so patience is 🔑. Now probably isn't the time to be buying call options. I'll personally be loading up on shares over time, just like I did with AMC during March-May.

So instead, I'll be selling puts, and accumulating shares. Opportunity waits for no one. I am still paying attention to $SPRT, but right now $BBIG and $AMC are the closest candidates to an imminent squeeze on my radar.

Best of luck to everyone. Stay safe. Make that money! 💎🙌