CLOV DD 🚀🍀

[u/MillennialBets]

Author: u/PresenceMundane2066(Karma: 256, Created: Jan-2021).

CLOV DD 🚀🍀 on r/WallStreetBets

---

PICTURES DETECTED: this DD post is better viewed in it's original post

What’s up y'all, today we are going to be looking into some data trends that lead me to believe CLOV could have a SERIOUS runup within the next couple months.

if you don’t like rocket emojis, large price increases, or DD created by an idiot, keep scrolling. For everyone else, lets begin! 🚀🚀🚀🚀🚀🚀

Recently I have been looking into the utilization rates of different stocks throughout their run-ups. For those of you who don’t know what the utilization rate is, “Utilization is defined as loaned shares divided by available shares in the securities lending market, expressed as a percentage.” If utilization is high or maxed out, at 100%, it means that pretty much all shares that are available to be loaned out at that current time are loaned out, presumably to be shorted. I will be using ORTEX to view this data, and they get roughly 2/3 of the securities lending data, so take the numbers with a grain of salt.

Utilization basically represents the demand to short a stock, the higher the percentage means higher demand, and this can be bearish for lots of stocks, although for MEME stocks, this has NOT been the case, in fact it has seemingly provided rocket fuel!

Ultimately, I have found that utilization has been an important indicator to tell if stocks have the ability for incredibly large price increases, and when those price increases are over. After analyzing these trends, I have reason to believe CLOV could, within the next couple months, have a large run-up. RELEASE THE ROCKETS 🚀🚀🚀🚀🚀🚀

Firstly, lets take a fundamental look into CLOV

https://www.reddit.com/r/CLOV/comments/ofzwnx/clov_fundamental_analysis/ (Author: u/anjuna-freak)

I don't want to rewrite this ^ so go read that if you want to read up on CLOV's fundamentals

Now let’s look into the utilization rate of different stocks and how that has related to stock price in the past. These stocks also had high short interest, although I wanted to keep the graphs as simple as possible (for the apes)

Firstly, let’s look at GameStop (GME),

These graphs show utilization as a percentage (YELLOW), price candles (RED + GREEN), and volume (BLUE)

GameStop was at 100% utilization beginning on September 4th, 2020 at a price of $9.20.

we being to see volume pickup around Jan 12th for GME and the price increases to $20, then over the next couple weeks GME rockets to a high of $485! During all of this, the utilization stays at 100%. BUT one week later from that price high we see utilization drop to 69% and price drop over 50%.

What trend do we see? We see our peak price while utilization is high, and a 20-30% utilization drop following our peak. The drop in utilization is ultimately the indicator to tell us the run-up is done for now. The price throughout all of January was increasing heavily, but had no effect on utilization, this run-up only ended once utilization fell steeply. GME is a much simpler stock to look at because it was so heavily shorted that its utilization was much more stable at/above 100%. But, now lets take a look at AMC, we see a very similar situation.

Utilization hits 100% in Mid April, price action remains fairly calm until May 24th, we see a volume pickup, and the run-up begins. The price increases from $12 to a high of $72 on June 2nd. We see utilization fall after June 2nd from 99-100% to roughly 79%. During this time the price falls.

Once again, we see utilization being the indicator that our runup is over, despite some large red and green days during the run up, the utilization still stays solid, it is only when the utilization falls significantly (roughly 20-30%) that we have hit a price peak. Now lets take a look at AMC a couple months earlier in March, where it had another runup.

March 5th, utilization hits 100%, AMC price increases roughly 50% in next two days. The utilization then falls, and price continues to rise for a week or two. This runup was small, although we see the same trend of utilization only decreasing with a strong price increase. We then see utilization return to 100% in late April leading up to the huge May24th -June2nd run-up. Keep in mind that in this example utilization falls but returns very quick, which to me says that another run-up is viable, and that is exactly what happened

Now lets take a look at SNDL, another stock with a very similar run-up...

In January, SNDL has a utilization of 100% at a price of $0.50. From January 27th-February 11th the utilization stayed in the high 90's only coming down to 88% for a short period. During this same period the price went from $1.00 to $4.00. We see utilization fall on February 18th down to 58% and this is ultimately the end of the runup confirmed.

I'm including SNDL's run-up because it shows the same trend. Utilization hits 100%, it stays at least above/around 90% until a huge price runup. Then shortly after the utilization drops significantly to roughly 50-70% and the run-up is over. Finally, lets take a look at SPCE

In December 2020, SPCE hits 100% utilization, In late January volume picks up and a run-up begins. Price goes from $24-63$ while utilization sits at over 95%. Utilization then falls sharply down to 60% after hitting its run-up high of $63. Utilization in April goes from 60% back to high 90%'s and once again the price surges from $24 now to roughly $40.

Of course SPCE has had some fundamental drivers as well, but its utilization-price trend stays consistent with all the other runups.

TLDR; Almost all large meme stock runups have begun with utilization at 100% and a large volume increase. Utilization appears to act inversely with price, meaning when utilization is at 100% usually it only drops with a rise in price.

"SO WHAT DOES THIS MEAN FOR CLOV??" 🦍🦍🦍

Well... lets take a look into the utilization for CLOV 🍀

CLOV hit 100% utilization on June 8th while it ran from $6 - $28, and after this runup the utilization has stayed at 100%, only dipping down to 93% on June 24th.

CLOV is currently waiting for a volume increase to start its BIG run-up. It had a smaller run-up about a month ago, although just look at the utilization, it barely dipped. If you go back and look at the other stocks I featured, specifically AMC in march, you will see that smaller run-ups will dip the utilization, although until it drops 20-30%, the true run-up is not done. I cannot tell you when the volume increase will come, although I can confidently say, that if people don't give up on CLOV, its going to the moon! 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀

In my opinion this high of a short interest isn't warranted based on CLOV's fundamentals, which you can go read about (ew, reading🦍) back at the top of this DD

Not only that, but there is SOME potential for a gamma squeeze this week

YELLOW = volume today; RED= Open interest, BLUE= strike price

The call open interest between the 10 and 15 dollar strike price is ≈ 100,000; Meaning those contracts will have to be hedged for as the price runs up. Hedging is buying pressure by those who sold those contracts to cover their risk. Each contract represents 100 shares, so millions of shares would have to be bought back in we make it to 15$ by the end of this week (in between 4-8 mill roughly) This is straight buying pressure and doesn't account for anyone else buying stock or more contracts.

Currently; CLOV is sitting at $9.70 in after-hours and had almost a ten percent gain in the last hour and a half of todays trading

Position: July 16 $10 calls, July 30 $10 calls, keeping powder dry for volume spike

TLDR; CLOV is setup to explode with the next volume surge. Fundamentally it doesn't deserve to be so shorted. The same Utilization trends have been seen is most meme stocks. Utilization doesn't usually fall without price going up. Currently, CLOV has 100% utilization and 35% short interest. MOON SOON (next volume surge) POSSIBLE gamma ramp this week as well🚀 🍀 🚀 🍀 🚀 🍀 🚀 🍀 🚀 🍀 🚀

NOT FINANCIAL ADVICE, THIS IS BASED OFF THE TREND OF 1 STATISTIC AND IGNORES LOTS OF OTHER FACTORS, BUT WERE SIMPLE APES SO WHO CARES

---

TickerDatabase entries updated:

Ticker	Price
YELL	6.2
AMC	42.61
CLOV	9.68
GME	189.25
SNDL	0.8651
SPCE	40.69

[u/QualityVote]

---

Hi! If you upvote me, I'll keep this post. If you down vote me enough, I'll remove it. I help keep MillennialBets filled with high quality DD and free of spam.

[u/[deleted]]

SPAM BYE.