This is what is known as a short squeeze. The big fish know they are being squeezed so they are attempting to manipulate the share price during pre market to scare small retail investors.
WadeSEC
OP103826216
:
Basically yes, due to the fact that the price was artificially lowered during the overnight and pre market hours. If it opens at 3.00+ then it is very likely that it will close above 3.00. Then Monday we will see another 50%+ price surge.
Passive Investor
:
i begged to differ bro..ffie is highly speculative..yesterday 50% rise is by means of speculative plays by the big institutions..Today will be the pump and dump session.. trapping those buying 3.30 * 3.50 * 3.60
TranceHead
WadeSEC
OP
:
a short squeeze occurs when borrowed shares need to replaced before the interest on those borrowed shares becomes too much to come back from. if you borrow 1000 shares and sold at $10 a share but owe 20%, you need to buy again 1200 shares lower than $8 to see profit. the squeeze comes from a lot of borrowed shares that have not been returned, so you need to buy the owed shares back, may take a loss but if you let the interest get too high, you'll never profit anyway.
103826216 : so can call in 3.30 for 2 lot
WadeSEC OP 103826216 : I’d recommend buying the actual shares instead of a call option.
Even if the closing price is 3.01 they will need to cover their puts.
103826216 WadeSEC OP : see open price first ...
WadeSEC OP 103826216 : Basically yes, due to the fact that the price was artificially lowered during the overnight and pre market hours. If it opens at 3.00+ then it is very likely that it will close above 3.00. Then Monday we will see another 50%+ price surge.
103826216 WadeSEC OP : now 3.20 later dropping to 2.60
Passive Investor : i begged to differ bro..ffie is highly speculative..yesterday 50% rise is by means of speculative plays by the big institutions..Today will be the pump and dump session.. trapping those buying 3.30 * 3.50 * 3.60
TranceHead : not what a short squeeze is but, whatever
Norman508 : love your opinion
WadeSEC OP TranceHead : Post your explanation.
TranceHead WadeSEC OP : a short squeeze occurs when borrowed shares need to replaced before the interest on those borrowed shares becomes too much to come back from. if you borrow 1000 shares and sold at $10 a share but owe 20%, you need to buy again 1200 shares lower than $8 to see profit. the squeeze comes from a lot of borrowed shares that have not been returned, so you need to buy the owed shares back, may take a loss but if you let the interest get too high, you'll never profit anyway.
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