Dear Apes,

I believe we are in the midst of one of the greatest short squeeze set ups (analytically) in a while and here's why.

Potential Catalysts:

  • As of Friday, the short interest of WKHS resides at damn near 45-50%; Now, a stock that has a mere 1.6 Billion in Market Capitalization with nearly half shares available selling short screams short squeeze.

    • WKHS (Data as of 6/5/21)
      • Market Cap: 1.6 Billion
      • Short Interest: ~45%
      • Institutional Ownership: 45%
      • Institutions that sold short: 106
    • AMC (Data as of 6/5/21)
      • Market Cap: 24 Billion
      • Short Interest: ~21%
      • Institutional Ownership: 26%
      • Institutions that sold short: 104
    • GME (Data as of 6/5/21)
      • Market Cap: ~18 Billion
      • Short Interest: ~21%
      • Institutional Ownership: ~37%
      • Institutions that sold short: 187

(Above you can compare some of the quantitative data to see the extreme similarities between GME, AMC, and now WKHS. All have over 100 institutions selling short)

More Catalysts:

  • Short selling rule active this Monday (6/7); this rule implies you cannot short a stock on an uptick if said stock lost 10% from the previous trading close. WKHS closed down 11% on Friday
  • If you look at the option data I have provided, I have monitored the open interest on WKHS the previous 5 trading days (highlighted in blue); OI -1 = 1 Day previous; OI -2 = 2 Days Previous
  • As you see circled in yellow, there is extremely bullish movement at the 15 and 20 Call Strike prices; Factoring in the flow of capital into the 15 Call around 1 million, nearing 1/1000 of WKHS ~1 Billion Market Cap; therefore quite significant, given these are derivatives with zero intrinsic value
  • Look at the chart I have included (in a 1 day chart time period) we can note the upward momentum with the MACD shifting, and TTM trend fully engaged from the first baby squeeze to 18 two days prior, volume dramatically increasing (highlighted in green) as well

A little Math:

  • As you can see, given WKHS is small cap stock currently, like how GME and AMC began after being shorted to the dirt, with WKHS having only a ~1 Billion cap, there is potential to double, triple, 5x this current share price of ($13/share). Given that half of the available shares are short (~600 million in equity), we only need roughly 200-300 million in buying pressure for a squeeze to begin. And given the fact that there are naked shorts at the 15 and 20 Call, that 200-300 million in buying pressure would bring us to that range alone, causing shorts to start covering immediately and thus a squeeze ensuing.

Option Chain Analysis:

  • If you look at the screenshot I have provided, you can see that the volume on this previous Friday of the options with strike prices of 15 and 20 at dates (6/11 and 6/18) are greater than the actual open interest. For those of you who don't know, open interest is the current amount of contracts that are open and effectively being sold short (Available shares x100). Since the volume of the current day is greater than the open interest this implies that the contracts were written on Friday (since open interest is always updated the following trading day)

Briefing for those unfamiliar with WKHS:

  • A renewable, electric delivery/drone, innovative company who was in competition to receive a bid for a 6 billion dollar USPS contract to supply a large quantity of vehicles. Unfortunately, the bid was lost earlier this year and has been aggressively shorted since.
  • This is an American born, American made company.

submitted by /u/shouldabeenalawyer69
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