Trade Alert: Top Names + Short Squeeze
A bullish options bet on one of our top ten names that's also one of the most shorted stocks in the market now. Plus, a follow-up trade on a microcap turnaround story.
A Short Squeeze Sequel
Yesterday, ZeroHedge quoted Goldman Sachs trader Ryan Shakey saying the current market environment reminded him of the meme stock craziness of 2021. In that post, ZeroHedge included this chart of stocks with the highest short interest as a % of float.
One of those stocks appeared in Portfolio Armor’s top ten names as of Tuesday’s close. Today, we’re going to place a bullish options bet on it.
Another Experiment That’s Panning Out
When the market was tanking back in March, we placed a few experimental trades.
One was a bullish trade on Tesla (TSLA 0.00%↑), which we exited for a >300% gain last month. Another was a bullish bet on a microcap ad tech stock which is has started to rip higher over the last week. It looks like word of the company’s recent pivot may have started to spread. This is the bull case for it, in a nutshell:
Business model is shifting from a low‑margin ad network to a managed, self‑serve offers platform that could support ~90% gross margins.
Flagship customer just renewed through 2028. That undercuts the popular “they’re getting replaced in‑house” bear thesis.
New vertical opening: consumer‑packaged‑goods coupons delivered seamlessly through large national retailers. If it scales, that’s a fresh budget pool (trade/CPG spend) vs. traditional retail offers.
Market cap is tiny and screens ugly because the transition depressed near‑term revenue. That’s exactly where mis-pricings live.
Well, it may not be mispriced for long. Our second trade today is a follow-on bullish bet on that microcap, which also happens to have double-digit short interest—not enough to put it on that ZeroHedge table, but maybe enough to juice its move from here.
Details below.
Today’s Top Names + Short Squeeze Trade
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