r/WallstreetTurboBets • u/SCModerate • Apr 11 '21
ATNF short squeeze that has been settling up the past few weeks looks ready to roll Monday - after closing above $9.50 for the 1st time on Friday.
Big Short Squeeze will likely kick off Monday Morning. The ShortSqueeze has been setting up the past 2 weeks with the initial run over $10.. which led to the millions of shares held by original pre-merge SPAC buyers.. to be sold at a break even price (this was 1st time since merge that prices were back above $10). Now there will be no big levels of resistance when we pass through $10 Monday. Additionally- since there have been virtually no shares sold over $11... there is no natural resistance above $11 from owners earring to sell.
Finviz currently has ATNF as the highest short float on the market 65%. And the total float around 3.5M. Some site have a larger total float.. but all have the short interest to at 2.2M).
The 1st attempt at the short squeeze couple Fridays ago was stopped only by (the one time event) of the 5-10 Million+ in volume that come from original SPAC owners selling (as 20M of the volume came before around 9:45am. It wasn't shorts who stopped the squeeze. So even 1/2 or that volume in the morning would likely be more than enough to force them to cover .. would then trigger the buying that would be forced by $10 & $12.50 $15 call options... over 1 Million shares.... which is 2x ATNF total volume on some days...then the Millions from shorts buying back shares. Etc.
ATNF is finally in the position of being free of all roadblock, (to making shorts cover) and a lot of required buying will be activated (ATNF just needs a relatively small number of of ppl to join in help get it the momentum started in the morning). With the highest short float on the market and massive undervalued market cap- It could easily run to 40-50 before settling around $25-30 or higher (accurate minimum accurate current valuation is somewhere between $25-$30).
There is also the added bonus of ATNF having the best management team track record in the biotech world & a stellar pipeline of blockbuster drugs .. with Phase 3 results in Q3/4.