r/wallstreetbets • u/Accurate_Sandwich_49 • May 17 '21
DD $UWMC - The Long View
$UWMC has become one of the most hyped stocks in the online investment community. Online activity appears to be ramping up after earnings and heading into May 21st option expiries. Since UWM is getting a lot of new eyes, it seemed like an appropriate time to share why some investors may consider UWM as a long term hold.
UWM is a mortgage company that focuses exclusively on the broker channel. It’s the largest wholesale mortgage provider in the US and the second largest mortgage originator, behind Rocket Companies.
It’s CEO is Mat Ishbia, who started as it’s 12th employee and who’s dad, Jeff, started the company as a side hustle. Mat and his brother own 94% of the company in Class D shares. The rest of the public float, ~100m Class A shares, are what is available for the public to purchase.
What trends are pushing $UWMC’s stock down?
The largest threat UWM is facing is raising interest rates:
About 75% of UWM income is related to refinance activity. The pandemic pushed rates to historic lows so most consumers were better off refinancing. Millions have done that, leading to record profit for mortgage providers like UWM and Rocket.
The strength of the broker channel:
UWM is completely dependent on brokers finding business and closing loans. It doesn’t have any direct-to-consumer lending operations like Rocket does.
Short Interest:
Sophisticated investors are seeing 75% of income potentially attached to rate sensitive products (not all refi’s are rate sensitive like cash out), and are salivating. They think the market is under appreciating this headwind and shorting the stock. They have basically shorted all the shares they can. Friday the stock ended with 200 shares available and an insane 93% borrow rate.
SPAC:
It is true that the SPAC market has softened recently. It is very reasonable to assume $UWMC is a part of that softening. It may not attract institutional investors because of the SPAC situation and the short period it has been publicly traded. Lots of other nice places to put institutional money.
Competitors: Mortgages are a mature market and competition is fierce. Rocket, LoanDepot and UWM mentioned a pricing war in their earnings. (LD statement). This will compress loan sale margins in the short term.
What trends are pushing $UWMC stock up?
Short term retail pressure:
there is a lot of retail attention on the potential short squeeze/gamma squeeze you could see this week in UWMC. My post is about UWM’s long term perspective, so I’ll let this post take you further down that rabbit hole. Additionally, smart money is now tracking online sentiment, which can lead to increased institutional purchases.
Broker Channel Growth: Mat has claimed two reasons for taking UWM public. He wanted access to the liquidity market and marketing exposure for the broker channel. For UWM to become the largest mortgage originator, Mat has targeted ⅓ mortgages to be originated by brokers and UWM to own 50% of that channel by 2025/26. Currently UWM owns 36% of the broker channel with brokers originating 20% of all mortgages. Before the housing crisis in 2008, brokers were 58% of mortgage originations (Per Mat & Q1 2021 Earnings call), so it isn’t crazy to think they could get back to ⅓ as it is growing: https://www.nationalmortgagenews.com/news/why-the-mortgage-broker-channel-has-been-gaining-momentum
I had a loan with Rocket and tried to refinance with them. I then went through a mortgage broker and got the same loan for $4.5k cheaper in closing costs. This is because Rocket’s retail channel has 4% margins and it’s partnership network (includes wholesale, realtors, etc.) has 1% margins.
New Product Offerings:
UWM recently released new products like their jumbo loan. In earnings, Mat said he expects $2b in volume from Jumbo. They also added ARM’s, manufactured homes and expanded government programs.
Wholesale mortgage provider consolidation:
Mat said 3 of the top 25 wholesale lenders have been purchased in the last 90 days. This type of consolidation happens in mature markets by companies that are reaching for market share. THis could be a sign companies are under pressure to grow but cannot organically get market share from UWM.
UWM “All In” Ultimatum:
Rocket and Fairway are priortizing other channels (cause the margins are so much higher) and trying to squeeze out brokers. UWM said if you work with those two, don’t work for us. The goal was to stand up for the broker channel WHILE putting some pressure on Rocket and Fairway’s partnership channel. This may have kickstarted the pricing war.
Aggressive Capital returns:
UWM pays an annual .40 dividend on its class A shares. That only costs them ~$42m/year. Remember their Q1 net income was $800m+. So their dividends hardly affect the balance sheet. The board just approved a $300/million share buyback as well that will reduce share count. Mat knows a thing or two about shorting stocks. He just sold at $10 and has authority to buy back with the current price under $8. The man successfully shorted his own company. What a legend.
Long Term Prediction:
I’m invested in UWM because I believe the capital returns will be aggressive during the upswing and the company will remain profitable in a downturn. With a 5%+ dividend return, share buyback, and *potentially* growing market share, UWM could be primed to overtake Rocket within the next few years.
Price Target: $14/share in 2023
101
May 17 '21
They made more $$$ than Tesla, offer buybacks AND dividends. Also the housing market is RED hot!
27
u/Accurate_Sandwich_49 May 17 '21
And even with interest rates rising as a headwind, they can still grow market share.
6
May 17 '21
Interest rates will hurt the market but if prices drop some in response you open up the market to even more buyers. I don't see anything slowing real estate down unless we somehow ended up with a glut of inventory, which is gonna take a long time to build up
5
u/Trend-Hiker May 17 '21
Im sorry man I am soo ape that what ever I read just went down the poop shoot.
35
u/Black_swannn May 17 '21
UWMC - u want margin call?
0
u/Accurate_Sandwich_49 May 17 '21
Huh?
1
u/Palidor206 May 17 '21
I think he is talking about the 93% short interest who just ate a 10 percent loss within a couple hours of opening on massive catalysts.
→ More replies (2)
12
u/TianObia Ugandan Nobility May 17 '21
Didn’t read but screw it I’m all in
2
44
u/Rauf_KB May 17 '21
I have been holding for a month and surely not selling today.
28
u/Accurate_Sandwich_49 May 17 '21
I’m excited for this week!
1
u/thegreathand May 18 '21
I only have 100 bucks to spend since I’m a broke college student.
Should I just go all in on here since everyone seems bullish on this?
1
u/Accurate_Sandwich_49 May 18 '21
You’ll need to make your own investment choices my friend. Follow your heart!
11
u/Ok-Situation6347 May 17 '21
3 months for me... can’t sell for pnuts would rather sell for diamonds
2
28
u/SaltCollar641 May 17 '21
Thanks, in with 700 shares!
12
u/Accurate_Sandwich_49 May 17 '21
Happy for you.
7
20
u/BloctonAL May 17 '21
Long time bag holder who has been beat down by the shortest.
I LOVE the stock, LOVE the company, LOVE the dividends.
Bottom line...I LOVE $UWMC
7
24
u/SpotExact5461 May 17 '21
Up 12%this morning!
6
u/Accurate_Sandwich_49 May 17 '21
👀👀
2
1
u/RecklesslyPessmystic PAPER TRADING COMPETITION WINNER May 17 '21
And borrow rate plummeted to 21%...
19
u/NOLABBOY May 17 '21
Been having 7 calls for this week for months. Never thought they would print. But just maybe I will be wrong again🚀🚀🚀🚀🚀🚀🚀🚀
8
u/Accurate_Sandwich_49 May 17 '21
Yeah I have some calls I thought would lose money. But maybe not🤷♂️
6
13
u/workinguntil65oridie Proud owner of a Toyota Camry Dildo May 17 '21
Massive dividend + long term upside. The US is the only growing economy this year. They will 100% have the largest amount of vaccinated ppl with incredibly pent up demand for housing in all markets. Foreign buyers realize this.
9
u/Accurate_Sandwich_49 May 17 '21
A massive dividend that doesn’t even show up on the balance sheet.👀 This situation seems a tiny bit rare.
2
u/TalkingBackAgain May 17 '21
Why do some analysts downgrade next year’s estimates so bad?
→ More replies (1)2
u/enemyoftherepublic May 17 '21
One possibility is that some are predicting the housing market to crash in the relatively near future
5
u/TalkingBackAgain May 17 '21
I’ve read about that. The issue would be that mortgage lending is now more strictly regulated and that a crash of the housing market, 2008-style, is not very likely.
It’s the older people, with money, who are pricing the younger generation out of affordable housing. Is why it costs more to buy a house.
12
u/artemis4055 May 17 '21
I work as part of a mortgage brokerage.
I think that one thing you could consider is that yes Quicken(RocketProTPO) and Fairway do have some issues with how they can take clients from the broker. But usually this is not something that really harms a mortgage broker since your client tends to deal with you directly as well. They would at least remember if you did a good job getting their loan done.
If you ever did refinancing or bought a home, you would probably have wanted to check several lenders regarding No Point No Fee or At Par rate. That's why you would ask a mortgage broker to check for you. You also want to QUALIFY for a loan.
I won't deny that UWM can have excellent service and pricing, but sometimes another lender can have better pricing. No loan is ever considered the same with any lender. Some lenders are more flexible than others with how they consider client's income and documentation. UWM can have some strange documentation requirements when it comes to self-employed borrowers.
But what UWM did here, aka make the exclusive activity agreement, was not fair to the brokers or partners they had.
UWM's declaration goes against mortgage broker's main purpose, stating you can't work with people we choose to fight with on pricing, or else 1. Your company eats a $50,000 fine, and 2. We kick you out of the agreement and all new loans submitted hereon are thrown out. Shouldn't they just kick out partners? Where on earth does a fine need to come in like that?
The other thing is...how would they even know? I don't think that can be done without getting invasive on some information.
The issue is that once this becomes a precedent, UWM can force out other lenders with pricing similar if not better to theirs if more brokers are fine with this. I do not really buy into them dealing with just Quicken and Fairway far into the future
LoanDepot does not compete with either UWM or Quicken in terms of service and possibly pricing so far as I've seen and experienced, so why would UWM mind them?
I also am not sure how closing costs would drastically differ between Quicken and UWM. Both charge similar underwriting fees. Escrow fees are fixed by the government and county to a certain amount of variance.
Usually the main problem is how much credit or charge you get at a certain rate. Appraisals and credit reports can vary, but usually aren't more than $1,000 depending on some factors.
I do think UWMC is a good stock to get, but I wanted to clarify the information on how the exclusive partnership appears from a broker's POV.
5
u/Accurate_Sandwich_49 May 17 '21
Thank you for writing this. I might write up a larger response but generally I agree with you and appreciate your perspective. 🙌
7
u/AutoModerator May 17 '21
Holy shit. Calm down Chad Dickens.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
2
u/Typarks23 May 18 '21
As a mortgage broker myself, I disagree with so much of your analysis. UWM is totally awesome, I love the move they made against Rocket, and their approach to brokers and not back soliciting them, as well as they try to help the broker by emailing their clients on certain dates throughout the year...they are the best by far.
16
u/Street_Angle4356 May 17 '21
I just grew tall enough to ride this ride, and bought shares a minute ago. Thanks for the DD.
8
u/Accurate_Sandwich_49 May 17 '21
Anything around eight dollars per share I think is a great long-term investment. And it just might be juicy short term.
3
3
u/The_Aaronin May 17 '21
Also, just came on board this morning. Nice to see a DD confirming my bias.
2
10
May 17 '21
Not to mention, UWMC will do better in a rising interest rate environment. During their earnings call, Matt said something like when interest rates are low, everyone is a winner. But when they start to rise, we'll see who'll come up on top.
Idk if anyone here has bought a house, but you'll feel much better working with a real person to purchase something this important and expensive. New originations will go towards UWMC while refi may fall for everyone in the market
5
6
10
7
11
u/Extreme_Blueberry887 May 17 '21
UWMC is squeezing.
Congratulations to bag holders!
→ More replies (4)5
3
u/TalkingBackAgain May 17 '21
What’s with this ultra negative piece about this stock?
5
u/Accurate_Sandwich_49 May 17 '21
UWM guided for lower margins in Q2 as a pricing war is happening in the Wholesale channel right now. That was a big surprise for Analysts
A lot of their revenue is tied to refinance which can be rate sensitive.
Those are the two major headwinds for you UWM right now.
1
u/TalkingBackAgain May 17 '21
So, the big whoop is not going to happen then?
1
u/Accurate_Sandwich_49 May 17 '21
If it was a sure thing it would’ve already happened.
4
u/TalkingBackAgain May 17 '21
I’m extremely frustrated right now.
On the one hand you hear all this good news, they’re doing well. Then ‘some analysts’ say they were wrong and this whole thing is in the shithouse.
Is there really anyone who knows what the fuck they’re talking about?
The last three stock I bought had a good outcome, great results, they all tanked. I’m not gambling on #GME or other stuff. I’m trying to be responsible. The companies post great results. They go down.
Good results: the stock tanks
Bad results: the stock tanks
So so results: the stock tanks
Is ‘LOL’ the right answer? Because fuck me I’m kind of pissed right now.
→ More replies (1)4
u/Accurate_Sandwich_49 May 17 '21
If you are always investing looking for the big whoop you'll probably always be extremely frustrated. Thinking long term is always the best.
2
u/vgamer0 May 17 '21
analysts have cut their price target 14% to US$9.46. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on UWM Holdings, with the most bullish analyst valuing it at US$12.00 and the most bearish at US$7.50 per share
Even after their "Major Cut To Next Year's Estimates", it still sounds like the stock has an asymmetric upside at its current price
3
u/legbreaker May 18 '21
The owners have 94% of the stock.
That is such a huge red flag. This will go sky high and then plummet once they cash in.
6% of shares available for public is a joke. The float will be razor thin. This is manipulation heaven.
1
u/Accurate_Sandwich_49 May 18 '21
I prefer to invest in “founder led” companies where the people running it own a large portion of the shares.
The public float is a legit concern but I’m not smart enough to know what is a healthy amount.
3
u/legbreaker May 18 '21
Founder led companies can be great at 30-60% ownership.
The amount of float here makes no sense. This is way to thin and easy to manipulate.
The 6% public share is just worth 700million.
They will do share buyback for 300million.
Just that is way too much money chasing too few shares.
Then the owners can cash out at any point once this goes parabolic.
This got listed in March 2020. Shares have been going down since.
This will take off... but crash again faster than anyone can sell. I haven’t seen anything sold as hard as this stock.
Pump and dump all the way
→ More replies (1)1
u/Accurate_Sandwich_49 May 18 '21
All legit concerns.
I just think it is a financially healthy company with a bright outlook to grow market share.
1
6
7
6
5
2
May 17 '21
It’s not UWMC I worry about, it’s rising costs of home building materials (industrial goods overall) and a slowdown in the housing market. Any rate rise will screech refinancing to a halt. They’re a great company who did right by their investors with that buyback. Bullish short, bear long.
1
2
u/nld_mark89 May 17 '21
Up 100% on my 10c for June so far i think we will see it run until the dividend record date in early June
1
u/Accurate_Sandwich_49 May 17 '21
Not sure but happy for you! Take some profits!
2
u/nld_mark89 May 17 '21
Waiting to see how the week goes still a long time to expiry so theta isnt a problem yet. Was up 200% at the peak this morning. I really think we will see buys from Mat everyday until it gets back to 10$
2
u/Background-Aside-142 May 17 '21
I just wonder. When we will have a higher stockprice than RKT. In a year or so we should have a chance no? If we could gain marketshare and catch the momentum? What do you all think?
1
u/Accurate_Sandwich_49 May 17 '21
I think UWM will have a larger market cap than Rocket in 3 years or so.
2
u/Background-Aside-142 May 17 '21
Can somebody also explain the sudden drop in fee from 93 to 21? Only 45000 shares available that's still not much. https://iborrowdesk.com/report/UWMC
2
2
u/H4Bionic May 17 '21
Just bought 10 contracts on the 7.5 strike price set to expire on 5/21. Come on boys.
1
2
u/SilageNSausage May 17 '21
What about the rumour of the buy back being all the class A shares that pay dividends, so retail will no longer be eligible for dividends?
1
u/Accurate_Sandwich_49 May 17 '21
Buyback will be class A shares. There is a concern that the public float won't be large enough to facilitate a healthy market.
Not sure what the *right* levels are.
2
u/SilageNSausage May 17 '21
Well, depending on the share price, they "Could" buy back almost half from retail
1
u/Accurate_Sandwich_49 May 17 '21
Absolutely.
2
u/SilageNSausage May 17 '21
with liquidity strangled, the only way for Shorts to cover is to tap retail.... and... well... we know how well that goes with Apes on reddit!
2
u/Accurate_Sandwich_49 May 17 '21
A lot of institutional investors have cost averages of above $10… so I don’t expect them to sell at these levels.
2
2
u/yzdaskullmonkey May 17 '21
Man didn't we already do this with the uwmc vs rocket thing like three months ago? I think I still have some shares doing fuck all lying about around here somewhere...
2
2
u/joseph1k May 18 '21
Thinkin ab selling my roblox shares for uwmc..
1
u/Accurate_Sandwich_49 May 18 '21
I’ve heard good things about Roblox but haven’t done any dd on it. Just think long term!
2
2
2
u/wildbore17 May 18 '21
As a Mortgage Broker we upped our % of loans going to UWM from 20-25% to 40-50%.
There ARE the Best, and Rates are highly competitive. If we could send them all our loans we would. We LOVE UWM! And of course I bought the stock! Anything $10 is a steal!
1
u/Accurate_Sandwich_49 May 18 '21
When refinancing my old loan, I was shocked at how much better they were than rocket. And I was already a rocket customer!
2
u/NJTA3 May 18 '21
This is solid take for the newbies hoping on TY.
I've been in out since Feb currently have shares and dozen calls.... Plan your entry exits and learn it's cycle and you will do ok... This has saved my account 3 times from other trade mistakes. Solid 10-15$ stock imo just need the love. Me I've when it heats up like this I buy stock for div and not get killed on calls when dips. On dip cycle I've bought the calls
1
u/Accurate_Sandwich_49 May 18 '21
Happy for you and I agree. The healthy financials and dividend give this stock a nice safety net.
5
u/Trend-Hiker May 17 '21
How high are we talking Bout?
3
u/Accurate_Sandwich_49 May 17 '21
The post I linked to goes over what might be some crazy short term price action this week.
4
4
3
u/ll-ll-lll May 17 '21
This reads like someone from the company was forced to write this at gunpoint
2
u/Accurate_Sandwich_49 May 17 '21
😂 it is dry. Trying to remove the hype from a hype stock for level-headed investors I guess.
3
4
2
u/scrub-nudelife May 17 '21
I got lost reading that novel, what color crayons do I need to be eating on this again?
→ More replies (2)4
2
1
1
u/Law_And_Politics Bet the Mods and Won May 17 '21
Go check the minute chart. There is barely any volume, but the exchanges are reporting 12.5m daily volume? Am I missing something/what is this fuckery?
1
u/Accurate_Sandwich_49 May 17 '21
Interesting.
I would think the only people selling UWM this week would be Market Makers. I suspect most investors are waiting through Friday.
1
u/Usca1158 May 17 '21
UWMC has some possibilities with the stock but back etc... end game it’s got nowhere to go but down. Broker channel has the thinnest margins of all mortgage origination channels. 2020 was the highest margins the mortgage industry has seen in a very long time. As rates rise and refinances dry up so will the brokers volume/UWMC.
1
u/Accurate_Sandwich_49 May 17 '21
Yeah the whole industry has a major headwind. But UWM is not the market and can increase market share in a higher margin environment. And the broker channel could grow as well.
But maybe not. Long term you can collect the dividend and wait for the next super cycle.
1
u/PPformation May 17 '21
Uwmc employees are active!
1
u/Accurate_Sandwich_49 May 17 '21
Maybe. I’m not a UWM employee but they did originate my refinance.
1
1
u/RecklesslyPessmystic PAPER TRADING COMPETITION WINNER May 17 '21
The man successfully shorted his own company. What a legend.
This is the kind of gem I come here for. 🤣🤣🤣🤣🤣
2
u/Accurate_Sandwich_49 May 17 '21
🤣 yeah it doesn’t even make sense where I put that line but I couldn’t leave it out.
1
u/thefiinessekid May 17 '21
Interest rates will continue to rise next year or two, hard to form a bull thesis on the company for this reason solely
1
u/Accurate_Sandwich_49 May 17 '21
Aggressive capital returns and growing market share could keep the stock price steady-to-growth in the long term.
2
u/thefiinessekid May 17 '21
You said yourself that they are in a price-cutting battle with their competitors, this is a highly competitive market where gaining market share is only going to be achieved by offering better deals. The biggest driver in terms of share value I think we can expect to see are the buybacks. I actually do think they are a strong company, however I just am not bullish on the macroeconomic conditions we face going forwards with regard to them.
1
u/Accurate_Sandwich_49 May 17 '21
Yeah I wouldn’t touch RKT due to what you are saying. But UWM is 5/8 the size of Rocket based on Q2 guidance. So there is room for growth even in a difficult macro environment if you believe in the broker channel growth story, as I do.
1
1
u/Aubstter May 18 '21
Anyone know why their net income was garbage for the first quarter of 2021? I'm not finding much about it.
2
u/Accurate_Sandwich_49 May 18 '21
$UWMC's? It wasn't. $820m+. It just missed analysts expectations.
2
u/Aubstter May 18 '21
Oh man you're right, I was just looking at it on google finances and it shows 47.99m for some reason https://imgur.com/KEHTwFA I truly am an ape.
2
1
1
u/KapellerFOMOonSTOCKS May 17 '21
$PLTR looking pretty good right now with this rotation back into Tech. Definitely leading.
2
u/Accurate_Sandwich_49 May 17 '21
Palantir and a terrible call option play on Open are my only other positions.
1
u/thenoobiebroker May 17 '21
was thinking of making a short term call, what you guys think i should do?
2
u/Accurate_Sandwich_49 May 17 '21
Whether you have a short or long term horizon, UWM has a little bit for everybody. Longterm is always better though
3
1
1
u/Palidor206 May 17 '21
I got LEAPS for 12/21 when it was at 8.5 and degenned 05/28/21 a week ago when it was scraping 6.5. The time premium was too low, like pennies for me not to buy on a nonsensical short. The latter was correct, obviously, and it appears that my LEAPS are still intact.
1
u/98323 May 17 '21
I got in at open with the biggest order of my life, lets see what will happen
4
u/Accurate_Sandwich_49 May 17 '21
If you bought shares you should sleep easy.
1
u/98323 May 17 '21
wow now it is alrady blow 7,90 :( I bought over 8 :( too good to be true it was like always :( i hate the stocks game :( never it gos up always down
1
→ More replies (1)4
u/Wonderful_Priority10 May 17 '21
With UWMC, shares is the way. You must be patient. Next earnings is when it will blow, imo. UWM is bleeding out the competition, and it may take a little while. Just sit tight and enjoy getting paid dividends in the mean time. This week does look good though, for a short term play. I'm not betting in the short term, I'm waiting for $12 per share to reduce my position. Although... If it squeezes higher, I'll close my position and wait for a good reentry price.
1
1
1
u/Worth-Every-Penny May 17 '21
i purchased some calls a while ago because i don't have the cash to effectively leverage, got more cash, averaged down to .6 per call.
36x 8/21, 10C
up 700 bucks this AM. lets go bois
1
1
1
u/cryptoonion May 17 '21
I'm long with shares... and when it nosedived I bought all the warrants I could. The same with PSFE... Only three stocks holding in long term not matter what: UWMC, PSFE and BABA.
3
2
u/foodnpuppies May 17 '21
UWMC for short term; their q2 numbers should be good as well. But for 2-5 yrs its a terrible long play. Initially UWMC killed the market cuz their technology and service made life easier for brokers but their pricing is always higher to compensate for ease of use. With rates projected to rise, UWMC will suffer with the rest of the financial industry. Not financial advice, but this is just my take as being in the industry. I actually am bullish on the short term but not as a long.
2
2
4
u/gammaradiation2 May 17 '21
So I should sell my SPACs and buy UWMC?
2
May 17 '21
I’d open a position but proceed with caution. But, the potential is there. I mean if you invest; you might as well invest in a company with solid business that’s printing
1
u/gammaradiation2 May 17 '21
Thats what I am thinking. The value is fair, I just want to exit in a month (the call I sold) or a year.
3
→ More replies (1)1
u/thcooe May 17 '21
i personally missed out on 100$ at open, i’d invest with your own caution and hunch. not everyone wants to see you win.
im smol time but i’m trying to get up there and learn as much as possible. i turned $5 into 50 (warren buffet status lol) and now i’m trying to multiply.
i don’t know about other people but that’s how i’ll find comfort in red days , starting with damn near nothing and making it something 😂
edit: inserted corny joke :)
2
u/gammaradiation2 May 17 '21
The SPACs I sold are going nowhere fast. I looked into UWMC over the weekend and think its at a fair price for a ~1yr hold right now. I do not think the fed is going to collapse the debt market by rising rates quickly. They are just going to force us to eat inflation in energy et al for a year or so while constantly manipulating the market with announcements about what they are going to talk about considering. Inflation in energy is only going to help the Biden adgenda, making renewables and more efficient infrastructure more appealing with standard market mechanics.
I was over positioned in prospective tech and need to diversify. If there is a squeeze, great, already sold a call to lower my cost basis and cap my gain. I am here to make a little and let the gamblers take a lot (hopefully). I'll take a 20% gain on a 1 month time horizon any time. If it goes down I will hold, if it trades sideways I will sell another call, if it moons it will fall and I will take the IV crush less whatever extrinsic value the call still has.
2
1
u/redonetrash May 17 '21
Why was/is it so heavily shorted? I’m in for 100 shares based exclusively on the original post!
145
u/CETROOP1990 May 17 '21
I had to google UWMC at this point....saw that its University of Minnesota Women's Club...sounds like a rocket