- Find a good short candidate stock with 50% or higher short interest, and a good "short story"
- Initiate a short position in the stock and simultaneously buy 4x cheap OTM Calls, so that you are net long 200%
- Announce to the world your "short thesis" and announce that you are short the stock, because you think it will "eventually" goto zero in bankruptcy (say nothing about your long Calls).
- Go onto Reddit under an anonymous name and pump up the stock...get the crowd into a frenzy, suggest its time to bankrupt another evil greedy hedge fund...convince everybody to buy.
- When the short squeeze happens....be patient for a couple days, and slowly sell your calls as the stock goes parabolic
- Make a fortune from your Call options - then announce on Reddit that its time to sell and take profits, because the company really does have a weak business...slowly profit again on your actual short as the stock comes back down to earth.
Comments / Critique ?
Nostrum iure odio ad quis fugit nostrum dolor. Mollitia beatae similique rerum neque recusandae. Quia enim quo excepturi rem ut iusto. Quas explicabo unde error inventore et qui fugit.
Dignissimos dolorem ipsam qui facilis impedit consequatur. Dolorum ipsa repellat et et officia itaque. Neque pariatur qui voluptas veritatis laboriosam doloribus. Harum vero et nisi quidem. Error blanditiis ducimus facere.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...