Good day sirs and mamas. I have been tracking the options activity on our jovial mascot Wendys. Things are starting to look good here wanted to share some metrics I’m following. The cost to borrow (short) went from 3% to 34% since we started poking the bears. There are about 200,000 open puts for next week between 6.5-8.5. Most of them out of the money. There’s going to be mechanical buy pressuring into next week as the delta on those puts goes to 0. There’s also a fuck ton of calls in the august chain and some even further out. It looks like this pos has everything it needs to squeeze. If the 8.5p go OTM before next Friday it should light the candle. Either way boys we must fight for our mascot and our tendies or else its ZJ’s behind WENdys. If you are wondering if this is a pump and dump or a real squeeze potential, the options structure suggests a real structured move here.
Coworker told me about this last week. Figure I’d throw some change at it and hold. 62 shares @ 8.03 and will see what happens.
ya I grabbed a bunch of $7 calls, $7 puts and 600 shares so far. I wouldn’t hold it forever, or start a cult about it… but the huge options positions make me like the upside risk. Worth holding onto for 2 more weeks to see if the party starts. Might be a dud, but it’s got all the right metrics supporting the possibility of a squeeze or reversal. It’s a trade not an investment.