Thread by @TRUExDEMON

It's been a while since I did one of these. This time, $BBIG is the subject of our conversation.

$BBIG saw moves of 20% with a long-standing pattern of repeating squeezes and massive falling wedges. If the trend continues, we may yet see it again.

This is just the beginning NFA

A lot of people made fun of us for this chart, but @AJ_LogicalChaos pointed out something that we frequently talk about in #HellsTradingFloor, and that's Algorithms tipping their hand by demonstrating repeating patterns.

Between these Fib timelines and the repeat wedges...

... I am convinced that $BBIG is being dragged around by a trading algorithm that is looking to profit on both the upswings and downswings on $BBIG.

Given the volume and OBV spike, I'm taking this as a sign that a move to the upside is imminent around 2/04 or earlier.

So as many $BBIG holders know, the biggest catalyst we've been waiting for has been that $BBIG is planning to launch a spinoff NFT company called Cryptyde

It's possible that the following changes in China may have triggered today's move.
cdn.discordapp.com/attachments/92…

This chart (courtesy of @PhaserOccams shows a repeating trend (signs of an algorithm) which uses specific trading signals to push a move on the stock and create a buy signal.

Specifically, the 200 day MA appears significant, where a crossover/bounce off the 200MA is the trigger.

Secondary to that is the HOLY FUCKING MOTHER OF ALL GAMMA RAMPS.

Approximately 31.5% of $BBIG's float of 123.38M shares is on the options chain.

~50K calls are ITM (5M shares)
~341.9K calls are OTM (34.2M shares) up to $10 strike

The amount of money required to move this stock is tiny compared to the enormous number of call options on the chain for this stock, and with the addition of the Short Interest of 25%, $BBIG is primed to exhert more 65% of its float in buying pressure.

We have been analyzing short-exempt data at #HellsTradingFloor, and it shows a correlation between the short exempts and these significant price movements.

This is data from August-September before and during the first squeeze.

Because of the spike today and yesterday, $BBIG is about to trigger 2 of my 3 squeeze signal triggers. I suspect the short exempt ratio will not hit for a few more days:

✅Utilization >95% : 99%
❌Short Exempt Ratio 3%+: 1%
🤏5MA > 15% over 3 days: 13%

Last but not least, let's review Ortex:

The average days on loan of 38 days places the average cost basis for shorts at ~$4.25 at best on Nov 22 before the gap-down.

We have a gap fill from $3.40 - $3.80 on that date, so I'm expecting some consolidation in this range before $4

After $BBIG ended up on the threshold list -again- for a brief period, I'm expecting these short exempts to result in yet another FTD spike in T+6 trading days, just in time for January 21st options expiration.

I'm watching the OBV showing massive divergence on $BBIG's chart, and a breakout of the wedge will mean clear skies for $BBIG.

I believe that January 21st options are a catalyst, but are by no means safe from expiring worthless.

MMs will stop at nothing to keep as many of those calls from expiring ITM as possible, so if you are an options player, $BBIG calls for 1/21 are too dangerous for a gamble of this magnitude.

I'll be choosing Feb 4th and 18th to place my own personal bets.

As always, none of this is financial advice. The important thing is patience. Anything can happen in the market, and anything can happen tomorrow.

Tomorrow may be volatile, it may be boring.
It may be a green day, it may be red, or it may be range-bound.

Patience is 🔑

@threadreaderapp roll up please :)