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Top 15 Options Activity from Friday \(1\/29\/2021\)
Due to the exponential increase in membership in WSB I have started to see a lot of misinformation, favoritism, and overall divisiveness going on within the community. I decided to do my own Due Diligence (DD) to determine which stocks I will be holding next week, and hopefully this can start up a meaningful conversation in the comment section to help out our new friends who mostly want to know what to invest in. I pulled the top 15 stocks with the greatest Options Volume from Friday (1/29). You can see all 4 of the $BANG stocks make this list. Despite understanding that GME is a heavily shorted stock with a Short Float greater than 100%, it is important to look at the Put Volume as well. This is the numbers of option contracts that are shorting the stock. GameStop is the only company of the batch that has a Short Float of greater than 100%, which is why this short squeeze is working so well, but it’s also the most heavily shorted on the options side. I think it’s important to see all 4 of the BANG stocks are heavily shorted on the put side too. If you look up who is buying these Put Contracts, it is mostly big institutional investors, whose best interest is to artificially depress the stock price so their puts pay out (look at what happened to BB and NOK on Thursday and Friday). This is why we have to stand together as a community and embrace the $BANG index that we created.
GME \- This is a short squeeze. Not much to say here. Buy, hold, don’t sell.
BB \- This is a gamma squeeze, not a short squeeze. 66% of the float (shares available) are owned by institutional investors, so while the float might seem big (550M), we are only dealing with 34% of the shares. Buy, hold, don’t sell.
AMC \- Also a short squeeze. The Short float isn’t above 100% but this is still a great potential candidate.
NOK \- This is a gamma squeeze, not a short squeeze. This is the weirdest one to me because everyone was claiming this was “bot” propaganda last week and then has the 3rd highest option volume on Friday. Not sure how to feel about this one, but hey its popular.
Defining some terms:
Short Float: Percentage of shorted shares in relation to the total number of floated shares (shares available to be traded)
Options Volume: Total number of option contracts bought and sold for the day
% Put: Percentage of total option contracts that are puts (think the stock will go down)
% Call: Percentage of total option contracts that are calls (think the stock will go up)
Put/Call Ratio: Ratio of puts to calls option contracts (higher the ratio, higher the short %)
FAQ:
\-Where did I get this chart from? https://www.barchart.com/options/most-active/stocks
\-Which Stocks do I own? I own all 4 $BANG stocks
\-Which options should I buy? Buy shares
\-This is just my personal opinion and not professional investment advice