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Forum nameGeneral Discussion
Topic subjectWhat makes gme/amc bulls believe “the squeeze” is coming?
Topic URLhttp://board.okayplayer.com/okp.php?az=show_topic&forum=4&topic_id=13421760&mesg_id=13434735
13434735, What makes gme/amc bulls believe “the squeeze” is coming?
Posted by shockvalue, Tue Jun-08-21 08:30 AM
I don’t understand this. It reminds me a little bit of the Storm and those Capitol folks lol. (No offense).

To my understanding, a squeeze happens whenever a heavily shorted stock goes way up...some (most?) shorts cover due to the losses they are incurring, and this buying activity drives the price up more.

With amc and gme, this has already happened no? Some shorts have covered, and now there are new shorts (who will cover again if the price moons again, but as this takes larger and larger amounts of capital on the long side the higher the share price gets, there’s a limit to how high the price can go, irrespective of shorting activity.)

Therefore, I would think the likelihood of a squeeze becomes less the higher the price goes, since it becomes less likely for the stock price to multiply again.

Also, I would think short interest would go down due to the fact that shorting these stocks is like playing chicken with the internet.