Wallstreetbets

BBBY touched as high as $30 yesterday but is getting crushed to the $17's in early trading this morning. As traders exit the position, they might be looking for the next possible squeeze runner candidate. GETY and FAZE make two ideal candidates. In fact, if BBBY holders who are hoping for $1,000 or some other very high target sold BBBY and placed the money into GETY or FAZE, they might actually get that type of target on those two stocks because the floats are so small, short interest is high and open interest on call options is large so gamma squeeze potential is there.  A quick background, repeated from our note from last week . GETY and FAZE are two recent de-SPAC listings. Both stocks merged with their SPAC listing at the height of the bear market. As such, they both had an extraordinarily high amount of redemptions as the SPAC investors were running for safety and taking the cash, thinking that both stocks would tank out of the gate like so many other SPACs have done over the ...

GETY and FAZE are two excellent short and gamma squeeze candidates. Both of them were recent SPACs. Due to a high amount of redemptions, their floats are minuscule until each registers their S-1 and it becomes effective. This process takes several weeks after listing, and both are extremely unlikely to get approved before August 19, the data of options expiry.  FAZE has a 3.4 million share float. GETY has a 0.5 million float. Short interest as of July 29th shows just over 1 million for FAZE and 319,000 for GETY . Daily cost to borrow is in the several hundred percent, but shorts who keep an open position are willing to pay that as they are banking on each stock to sink back to $10 once the S-1s are effective. The problem with that is they do not control the timing of when the companies submit their S-1s and when they are deemed effective by the SEC. SPACs generally do have clauses in the PIPE and warrant agreements that state this needs to be done within 30 days of listing. But th...