The next 3 extravagant weeks to come …! For NYSE: AMC By Moshkelgosha
These types of price movements are weird and inexplicable phenomena for newbies …!
Let me explain why this phenomenon occurs:
Stocks with high short interest are often very volatile and are well known for making explosive bullish moves (called short squeeze). Securities traders often flock to these stocks for no reason other than the fact that they have a high short interest and the price can potentially rise very quickly when traders with open short positions start to hedge.
1- What does the interest run?
Short interest is the number of stocks that have been sold short but have not yet been hedged or liquidated. Short-term interest, which can be expressed as a number or as a percentage, is an indicator of market sentiment.
Extremely high short-term interest shows that investors are very pessimistic (potentially too pessimistic).
When investors are too pessimistic, it can lead to sharp the price sometimes goes up.
2- What is the quadruple witch?
Quadruple witchcraft refers to a date on which the stock market index , stock index options, stock options and single share expire simultaneously. While stock option contracts and index options expire on the third Friday of each month, all four asset classes expire simultaneously on the third Friday of March, June, September and December.
Quadruple witchcraft is similar to triple witchcraft dates, when three out of four markets expire at the same time, or double witchcraft when two out of four markets expire at the same time. (2)
By now you should have a clear view of these inexplicable price movements! I believe that with the right timing we can use this information to make extravagant money ..!
I’ve been through several resources and here is a watch list of stocks that may be experiencing the squeeze phenomenon over the next 2-3 weeks!
Be careful, these types of price movements have certain criteria:
1- They don’t last long
2- They tend to be volatile (intraday) due to the involvement of algorithmic trading.
3- They have big gaps
4- There is a risk of entrapment (see what happened in SPRT Friday)
6- Tracking short-term interest trends is the key to success, a huge change could be considered the last day!
7- This reasoning could explain the reason behind many movements of “Wall Street Bets”!
for more information please read my related articles:
Maximum pain or short pressure?
Is there a hidden rationality beyond irrationality?
What is “witchcraft” and why is it fourfold?