Short Squeezes Are Brewing
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Brandon Chapman just flagged two stocks setting up for potential short squeezes right now. The Santa Claus rally never showed up.
But beneath the surface, aggressive call buying is creating the conditions for explosive moves.
Brandon tracks options flow to identify gamma squeezes before they trigger short squeezes.
When someone buys thousands of call contracts, market makers have to hedge by purchasing stock.
That buying pressure forces shorts to cover, creating a feedback loop that can send prices soaring.
The key is finding stocks with massive short interest where call buying is already accelerating.
In tonight's video, Brandon breaks down:
- ENVX has 31% of its float shorted with an 8.5 day short ratio. Someone bought 11,500 contracts at 12:58 PM and the stock immediately spiked on heavy volume.
- 17,000+ call contracts traded on the $9 strike, 24,000+ on the $9.50, and 16,000+ on the $10. Almost all filled at or above the ask price.
- FFAI has 22% of float shorted with a 7 day short ratio. Over 21,000 calls were bought today on the $1.50 strike for this week's expiration.
- Both stocks have a history of 50% to 100% moves in just days. FFAI went from $0.82 to $1.37 in three trading sessions during its last squeeze.
Brandon sees potential for ENVX to reach $14 to $16 and FFAI to hit $2 to $3.50 if these squeezes develop over the coming weeks.
Video Length: 00:11:34
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