Original “TMC stock has explosive setup” post by the legend himself u/zg44
TMC (The Metals Company) is a recent “de-SPAC” that started training on Friday. It’s a deep sea mining company with a market cap of $2.35 billion with 245 million shares outstanding(current price in the $9-$9.50 range.)
The key here though is that 231 million shares are locked up at least six months in the 11 million pipe shares are locked for at least a month (but perhaps longer because 2/3 of their PIPE didn’t pay up.)
OK so why do we care? Here’s why this is potentially one of the most explosive stocks we’ve ever seen this week.
The current float is 2.72 million because 91% of the original shares redeem for cash.
The short interest is around 1.77 million shares (or roughly 65% of the current float is short.)
But here’s the “canary in the coal mine”: the open interest. Market makers were selling calls based on The prior 30 million shares outstanding before last Friday, which means that they’ve potentially sold much more than the current entire float:
(Having trouble embedding photo of the option chain but will edit later)
Theres 25K calls for 9/17 between $10 and $12.50. That’s 2.5 million shares. There’s another 8.2K calls for 9/17 between $14 and $15. That’s another 820K shares.
That means that the stock is over $12.50 by Friday, MM’s will need 92% of the current float to meet just September calls. If it is over $15 by Friday, MM’s will need 120% of the current flow to meet those calls.
That’s just September. Add in those October calls (another 11.8K calls between $10 and $12.50 and another 7 K calls between $14 and $15) and you’d require another 1.9 million shares for those…
So if TMC goes over $15, MM’s would need 190% of the current float to account for September/October calls.
(And as I mentioned above 65% of the current flow is short.)
I’m gonna be honest, I have never seen a situation like this (because the level of redemptions for recent de-SPAC AC’s recently is just unprecedented.) MMs have to keep this pinned under $10 by Friday are all hell will break loose
Easiest way/lowest risk way to play this is just buy stock (which should go up 200% – 300% in a gamma + short squeeze scenario.) September the calls are super risky but will pay off in 5/10/15 baggers if the stock actually gets past $15 in rockets.
October calls are lower risk than September but should still turn in 4/6/8 baggers if it gets past $15.
Positions 1000 shares of stock. 250 $12.5 calls, 200 $15 calls for sept.
As always do your own DD, I think this is the most explosive set up ever, but it may just stay pinned under $10 and then the calls are worthless good luck.
All credit goes to the mastermind behind this DD u/zg44 . I’m just here to help spread the word so we can all get some trendies 🚀🚀🚀
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September 15, 2021 at 11:58AM