Once in a lifetime discount opportunity detected at $ROOT via /r/wallstreetbets


Once in a lifetime discount opportunity detected at $ROOT

Have a wonderful day my fellow apes,

I would like to share with you why $ROOT is the scariest stock for a short (yes, Citadel is short right now) to hold through this week. I bundled my reasons in 5 points:

  1. Fundamental and growth merits of the stock (so you can see it's not only a pump & dump situation)

– $973,100,000 cash on hand : 248,900,000 shares -> $3.91 (According their last ER not including any funds from Carvana deal)

– they are the biggest UBI insurer in the US

– more and more states start to ban credit score systems like Washington

– biggest car insurer Geico only has presence in two states with their budget "ubi" while $ROOT got approved in 35 states

– best tech investors (e.g.:Capital Partners Iii, L.P. ,Malka Meyer, etc…) already invested at much higher prices and none of them sold

– they are opening embedded insurance and agency channel to acquire new customers at a much lower cost basis

Root flywheel

  1. $ROOT is in one of the most beautiful falling wedge patterns with a breakout imminent- this is a 1 year 1 day chart.

1 Year 1 Day Falling Wedge Pattern with Breakout Imminent

  1. Yesterday, $ROOT also updated us on a catalyst that $CVNA (Carvana) increased their ownership from 5% to 11%.

October Call Options

  1. The stock is being heavily pinned below $5/share with a 34% short interest and a constant 50% short volume in dark pool as there are 53,000 call options expiring this week 10/15 from $5-10 strike price. I like this setup a lot, but it's going to continue to be heavily pinned even with a catalyst.

Dark Pool Short Volume Ratio

5. In theory if enough apes gather around then we could break open this pinata of shorts and start collecting tendies!

Potential Tendies

Submitted October 13, 2021 at 05:22PM by sutsniagatebtnod
via reddit

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