$Senseonics (SENS.US)$ About the Company: This play is NOT ...
About the Company:
This play is NOT based around the fundamental value of SENS, but it is important to know what the company is before investing
SENS designs and manufactures Glucose monitoring systems. Their flagship device goes under the skin and transmits data to their app in real time! Their accuracy in real-time monitoring is revolutionary, especially considering that their newest transmitter lasts up to 180 days
They are currently awaiting FDA approval on the 180 day sensor, but have cleared most major regulatory hurdles
Knowing that they are creating a good product clears some of the risk
OK now that we got that boring shit out of the way, let me show you the REAL fun!
Options Market:
Sens has an INSANELY bullish options market with a put/call ratio of 0.2! This means that for every put, there are 5 MORE call options purchased!
EVEN including meme stocks, this is the HIGHEST P/C ratio I have EVER SEEN
A high open interest and P/C ratio mean two things; the market thinks this stock will go up, and this has a potential for a gamma squeeze
The open interest on just 9/17 expiry is INSANE
This means that ANY increase in IV or price of the underlying stock will lead to MM’s purchasing a shit ton of shares to ‘gamma hedge’ to stay delta-neutral, which in turn will lead to a chain reaction of MM’s buying shares to hedge which causes the price and IV to increase further
Every stock/option you buy will be multiplied by this effect, giving you a MUCH larger influence over the price of the stock
Short Interest:
Despite making a good product and having an insanely bullish options market, shorts have over-shorted this stock up to 30% SI!
Additionally, over the past few weeks about 45% of the daily volume has been sold short
These numbers alone don’t necessarily mean shorts will cover their positions… But if you include the bullish options market, which is primed for a gamma squeeze, and a potential FDA approval, you begin to see why shorts are fucked and will begin to close their positions soon. All this stock needs is a catalyst...
Possible Catalysts:
The main catalyst I see for a short squeeze is full FDA approval on their 180 day sensor. Once it is approved, many shorts who were betting on the company going bankrupt will get out
A few shorts covering mixed with such high open interest and new investors getting in will lead to a massive price spike and the potential to trigger margin calls on over-leveraged short positions
The more likely situation I see though is an immediate spike followed by slow exits from short positions. I don’t see a massive M O A S S happening, but instead steady upwards momentum as shorts close their positions
I see the 180 day sensor being approved within the next 1-2 months as their 90 day sensor has already been cleared awhile ago and their 180 day sensor has cleared most regulatory requirements already
Positions:
10 $3.5 C 9/17, 10 $4 C 9/17, 20 $4.5 C 9/17, 20 $5 C 9/17, 10 $3.5 C 10/15, 20 $4 C 10/15, 20 $4.5 C 10/15 100 shares
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
xyin88 : Well written. Very informative !![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
StormBlessed : Damn, that was extremely well thought out and full of insight my man, for real. I actually understood and was able to interpret about 80% of that, which is a rarity for me when people start speaking stock market. I think I even figured out most of the abbreviations you used too lol. Keep more gold like this coming, I bet moomoo will even pay you in stocks to keep posting stuff like that, I can't tag them rn or I would. Good work
potsy52 : Loved the breakdown / you are Definitely a sapient stock Guru/ Language is offensive at times but trying to overlook it.