Trade Alert: Squeeze Play

A bullish options bet on a potential short squeeze.

Mar 06, 2025

∙ Paid

A creative and symbolic illustration of a bull squeezing a lemon, representing a short squeeze in the stock market. The bull, strong and determined, is using its hooves to squeeze juice from the lemon, emphasizing the pressure on short sellers. The background includes financial market imagery, such as stock charts with sharp upward spikes, green candlestick patterns, and floating dollar symbols, reinforcing the stock market theme. The colors should be vibrant, with a mix of greens, yellows, and blues to create an energetic and engaging scene.

Making Lemonade From Lemons

Wasn’t planning to post a second trade alert today, but might as well take advantage of the market getting clobbered here. We currently have a trade open on this stock from last year, that’s currently out of the money. At the time, it was a Portfolio Armor top name, but now a couple of the market technicians on my X Market Watchers list have highlighted its chart. Chartmill gives it an overall technical rating of 6, and a setup rating of 7.

In addition to its bullish chart, the stock has about 24% short interest, raising the possibility of a short squeeze. If the stock starts to rebound, short sellers may have to start buying back their shares, driving the stock even higher.

Our trade on it today is uncapped, so the sky’s the limit if this stock rebounds this month. If it doesn’t, our maximum downside risk here will be a 100% loss.

Details below.

Today’s Short Squeeze Trade

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