Vinco Ventures Inc (BBIG)

[Bountiful_Harvest]

Worth reading re next week's potential BBIG Gamma Squeeze:

https://www.reddit.com/r/BBIG/comments/tw8yl5/bbig_gamma_ramp_incoming/

lets look how a gamma squeeze can occur. The precipitating factor to a gamma squeeze is INITIAL buying pressure. This can occur from PR, FOMO, buzz for dividend, or even because people see a stacked options chain and know there is money to be made. As more people buy BBIG the price of the stock goes up which causes the delta for each strike to go up. This becomes a lot more volatile closer to expiration which is why next week is so important with so many options expiring. Lets look at the data to see what could happens...

https://www.barchart.com/stocks/quotes/BBIG/options?expiration=2022-04-14-m
https://www.barchart.com/stocks/quotes/BBIG/options

For strike 0.5-1.5 there isn't much open interest - 348 options contracts

But from strike $2 to strike $3.5 we have 77,115 contracts!!

MMs would have to hedge 7,711,500 shares. As delta increases MMs have to buy more and more shares AT MARKET PRICE to remain delta neutral. MMs are legally not supposed to make money off of the options (only supply liquidity) which is why this works. This added buying pressure is what causes the gamma squeeze.

Things get even more spicey from $4-$5 with 138,991 MORE OPTIONS for a total of 216,106!!These are all currently OTM. That means if we hit a price of $5 then close to 21,610,600 shares would have to be bought JUST TO HEDGE!

If we get to $5 then the $5.5 to $10 options come into play for an additional 128,644 contracts making our grand total 344,750 contracts or 34,475,000 shares just for hedging!! With our current float of 190 million that is almost 20% of the float that could get tied up. This is buying pressure just from the MMs not including retail or any large institutions who would get in on the play.

Large institutions already own almost 20% of the stock with insiders owning an additional 10%. We also know the stock is extremely heavily shorted and we have a solid base at $3 with the consolidation over the past few weeks. Limited downside with RIDICULOUS upside potential. This can all happen without any news. If the record date gets dropped then we'd be talking whole new levels. If you're watching to find a right time to buy just be careful because once the squeeze starts it will move very quickly.