Shorts just covered 79k Pre Market The price is up 45 cents.
Only 23,200,000 shares to go that is 2,936 of those 79k covers wait what would happen if we multiplied 2936 x .45 = that is $1321 per share, lets say that I'm off by a factor of 10 that is $132 + 11 bucks or $143.
If I'm off by a factor of 100 $13 per share plus $11 = $24
Interesting, there is no way to tell how high or how long this will play out but at 338% Interest if it lasts 3 months and a small short had $10k invested Broker Loaned them $10k Lets say they shorted this at $7
$20k realized after the shorts sold 2,857 shares at $7
that $20k is costing them $67,600 per year or $185 per day or $5,556 per month, remember that they only invested $10k.
OK so lets say that they are able to cover at $11 2857 x $11 = $31,427 but they only have $20k ($10k original investment plus $10k the broker loaned them) So they loose $21,427 Plus $5,556 per month in interest for that 3 month play ($16,668).
$21,427 + $16668 = $38,095
Not exactly for the faint of heart.
X Hopefully they hedged that bet with options but I only used $11 which is proly where many protected themselves via a call option.
As options strategies go, shorting the stock and buying the call is very straightforward. One starts with shorting a stock in the usual manner. However, the investor also purchases a call option at the same time. The call gives the investor the right to buy the stock at a certain price during a specific time period.
The shorts just sold 20k back so it stands at 59k returned this morning up 25 cents
45 Cents on 79k
25 cents on 59k
Pretty much the same ratio.
X
Bullish
