Dear Apes, I'm writing to you today to tell you a few things. I see many people not understanding and wanting to. A lot of people spreading misinformation, etc. I want to clear the air and inform you crayon eaters.
Welcome to WSB (Wall Street Bets) Reddit, the home of the Apes. We are collectively we are considered one of the largest hedge funds in the world. There are many baby crayon eating apes whom are eager to eat some tasty banana's. Many of you question how any of us make money, so please feel free to ask questions in the comments as I will be answering as many as possible, although keep in mind I am not a financial advisor, I simply love the stonks.
The main topic and example today is $CLOV. You've most likely been hearing a lot about it. Let me explain the hype behind our four leaf clover and what you need to expect and do to make some crispy chicken tendies (currency).
$CLOV is a very shorted stock currently with an approximate short float of 50% (please correct me if I'm wrong). A short in simple terms is when someone bets on the stonk going down in value. They 'borrow' the stonk at $50, and give it back to the lender at the lower price of $20. Profiting $30. But here's the catch. If they 'borrow' the stonk at $50 and it going up to $100, they must buy the stonk at $100. Which will raise the price of the stonk. Make sense?
Good. Now, what causes the short squeeze? Truth is, many factors. WSB as a whole usually rallys around certain (meme) stonks that are either undervalued and/or highly shorted. Once we do it causes a jump in price. The shorts wet themselves from a gamma squeeze (high volume trading from Apes dumping all tendies into a stonk). This causes them to eventually have to pay back their shorts at a ridiculous price and I'm turn causes the stock to go up.
What is the perfect recipe? Well, because it's so highly shorted and we have a ton of Apes hoping on the stonk going to the moon, they've bet on it. Opening many contracts on the four leaf clover. Once the price reaches above a certain value, many will 'exercise' their contracts (which means actually purchase their shares at the 'strike' price they set it to. Causing a huge influx of shares to be taken at once.
Is it too late to purchase $CLOV? No, it's not. Is it going to go up? It depends on us. If you hold, the shorts will need to pay those banana's back to us at the higher price. Did you get it too late? If you purchased below $25 so far, you will profit if you hold. $CLOV isnt as much of a meme stonk as you think. They have great fundamentals and actually is a great business. So everyone that has purchased, don't worry. You'll profit if you hold. What you're seeing now is only a gamma squeeze caused by us, and everything is going to plan.
What will the price hit? When do I sell? Good question, no one ever knows. But I can tell you personally, this will hit $50 no problem if we just work together. The stonk market is a scary place, but we have the power in numbers.
Did I miss out? Should I buy now? It's up to you, I'm not s financial advisor. Personally I'm doubling down tomorrow at open, no matter the price. So do what you must with that information.
To all of those stuck on AMC and GME. This is not for you. This is also not a distraction from either of those. Feel free to go with your gut. What I'm telling you, is there is tons of opportunity here, and there will be enough tendies for everyone.
Apes, stay calm, follow the drill. I wish every single one of you, the best luck. 🍀 After all, we have the $CLOVer on our side. 👍
Edit: June 18th many option contracts expire. So expect tons of movement in the coming days in an upward trend. Expect price drops a day or two before June 18th as paper hands try and exit. Don't fret, it will go back up. 🎢 Also, NO SHORTS HAVE COVERED THEIR POSITIONS YET. Which means, this hasn't even begun yet. Next few days will be interesting.
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