BBBY is not squeezing anything but your left nutsack right now via /r/wallstreetbets


BBBY is not squeezing anything but your left nutsack right now

I feel like I am getting a brain aneurism reading through 99% of the posts regarding a short squeeze on BBBY. It feels like I am in the BEETEECEE subreddits. Before you downvote me, bitch, know that I am LONG the stock – for the retarded goldfish in the back: that means I am BULLISH.

To start this short post off: suck my dick you fucking nerd bot.

https://preview.redd.it/dpwx6211mxf91.png?width=860&format=png&auto=webp&s=fc29e8a6b33f527faded58a9a213c10f6e5530a8

Disclaimer: I am BULLISH on BBBY because it is a deep value play against bankruptcy, which I believe won't happen. Add the SWAP correlation to other ,,meme stocks'' into the mix as well as the exposure from over-shorting (personal opinion) and mis-pricing in the market, as well as Ryan Cohen, then you got a no-brainer. Similar setup as Gamestop, though I believe not quite as spicy due to the lack of appeal compared to Gamestop. Fuck I loved Gamestop's setup so much I bought XXXX in November 2020 for 11$. This is not the same.

Sponsored by Kenny G

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What do you need for a fucking short squeeze?

Shorts that feel forced to close their positions and a dropping short interest.

  1. Are shorts forced to close their positions?

Ideally we would need an environment where a short position is under water and the hedge fund feels threatened that it gets worse. And even then they would most likely hold out because retail usually doesn't execute calls which frees up shares from delta hedging to drop the share price strategically when volume drops.

Also, not implying that there are any bad actors, you could use a befriended market maker to supply liquidity and short the fuck out of the stock to scare away those piling into options and calls today. You can fuck them in any way possible.

So let's see if shorts are most likely under water. The closest guess we can make is to check how long the price has been below the current price. For the sake of it, let's say 8$. Because the longer we are under water, the sooner they will close out and seek a better opportunity in the market.

https://preview.redd.it/7xfelg1rgxf91.png?width=1510&format=png&auto=webp&s=1712b839134d1339308b90a59a7dc3378c2220ba

We have exactly been approximately one month in 2020 (covid crash) and one month prior to today below the current price. So to be underwater with your position, you must have opened a short position ONLY in the past 3 weeks and at the very end of the covid crash. Not before, not after. That's only a level of being retarded that WSB or Jim Cramer could achieve. Also given the comparably low volume of last month, its highly unlikely.

Well maybe before that short positions were opened like on GME and they held through the whole time to hit bankruptcy jackpot?

https://preview.redd.it/g0ezutvdhxf91.png?width=684&format=png&auto=webp&s=6846572d3e827edff1452e9ce20855b50262351a

The last time BBBY was below current levels was in 1997. So before most of you fucktards were even born. And the price action doesn't really look like it was shorted back then because those shorts would have been closed out when BBBY hit 80$ more than a decade later.

What about rising cost to borrow as another indicator of SHFs scrambling to get shares to close out former positions?

https://preview.redd.it/sa3l9ai0ixf91.png?width=824&format=png&auto=webp&s=9a5645640005e657bfdb80c1f479199d1ec3418e

This is literally change. Given the market cap of BBBY of much less than a billion, even if they shorted the stock 10 times over, this would be nothing but change for several SHFs.

So no, shorts aren't being forced to close when their investment (short position) is still not remotely to being in danger after shorting it from 80$ down to 4$.

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  1. Short interest isn't dropping

If you have a short squeeze, short interest will drop dramatically. So since we don't have data from today, let's take the data from 07.07.2022, a day where we had more than 60 million volume and a price rise similar to today. That's a comparable data point to today.

https://preview.redd.it/j3prinjnixf91.png?width=904&format=png&auto=webp&s=1c88c49487309cb4607fe347a5055302c7599c2c

Short interest rose in that period, which doesn't indicate closing the short position (read: being squeezed), but looks like pre-mature FTD covering or netting of positions (CNS) or being exposed to Swaps – it surely wasn't the news of an insider buying a few shares (laughs at media). But those topics aren't to be discussed today.

So this is not a fucking short squeeze.

But wait, could today ignite the short squeeze for next week due to delta hedging ending in a gamma squeeze? For the sake of it lets pretend everyone is exercising their calls, which is near impossible.

https://preview.redd.it/svj0hockjxf91.png?width=1280&format=png&auto=webp&s=651a01d6eafdfc3357f4be20ada1a03883682b91

That's what…quick maff… 35000 calls ITM? That's 3.5 million shares if ALL OF THEM WERE EXECUTED. Which is not happening. Never.

There hasn't been a single day where volume was lower than that in months. Average volume in a week is usually between 30-150 million.

Surely 3.5 million shares would blow up a short hedge fund with an ITM position. A hedged position. With a friendly market maker.

So no, this is not a fucking short squeeze YET. You aren't squeezing anything but your left nut.

Stop running around screaming ridiculous price targets for next week.

My educated guess: we are seeing settlement (CNS or FTDs) from settlement cycles we have been seeing in the past years on the meme stock baskets. The current run-ups are not in-sync between the stocks, so I am assuming someone needs to let steam off the (volatility) swap pressure to avoid the price exploding during OPEX settlement.

TLDR: You guys are absolutely retarded to think you are squeezing anyone out of their position. There is a good set-up for a mispriced retailer that is being valued as bankrupt. Ride this wave, do a x2, x3, x4 or just yolo into 0DTE (not now, retard) or ATM Leaps. We are currently seeing settlement (CNS or FTDs) or/and a valve of volatility swap pressure.

Thanks for coming to my TED Talk.

Submitted August 05, 2022 at 07:39PM by Sh0w3n
via reddit