WC: 21.73 Target: 1800-2400 MOASS: 47k-100K: MOASS PLAYBOOK***I will be releasing a video either tomorrow or Monday. Had to have an emergency procedure on my mouth and am unable to speak clearly at the moment***
Convertible Bonds:
Immediately after the news was released I posted that the interest-free Bonds were a good thing as they were not immediately dilutive because Buyers need price to rise in order to see profit. The Bonds were ultimately priced at approx 29.85.
Why did the price decline so sharply?
In the words of Larry Cheng..Hedge Funds Gonna Hedge or in words Hedges would use: Convertible Bond Arbitrage. Simply said "Arbitrage" plays try to exploit mispricing between two or more correlated assets. In this case...GME Stock price vs The price of the Bonds.
To hedge against the risk of the Bonds not appreciating in value (remember they don't pay interest so they NEED the stock price above 29.85 to see profit) they enter an equivalent SHORT position to essentially make themselves Delta Neutral to any unfavorable moves in the stock price (aka they dont want to be exposed if price never makes it above 29.85 or sees sharp declines at a future date).
The mispricing piece of this comes from volatility and options values and would materialize as the price of the shorts converge with the price of the Bonds (the more volatility the more the potential mispricing and profit potential)
WHAT HAPPENS IF PRICE SQUEEZES THEN?
ALL short sellers are future buyers so they would most likely cover to possibly close the shorts, which on top of what THE CAT is doing could cause MOASS to be even GREATER IN MAGNITUDE...yeah this was a CHECKMATE of a move by Ryan Cohen and the board people.
MOASS PLAYBOOK:
I have been saying for months that I'm fairly certain I have figured out the exact timing of The Cats play. Without saying more than I'm comfortable saying its built around settlement cycles.
Everything I learned I learned from his tweets...literally EVERYTHING is there
And the kicker to all of this is that it works on more than just GME...as he has shown.
What you see on the chart is EXACTLY how MOASS will transpire based on what I've learned.
Could I be wrong? Of Course. You are responsible for your own trading so I would advise you to assume I am and TRADE WHAT YOU SEE...NOT WHAT YOU HOPE FOR
So I have now given you the EXACT timing as I have it laid out on my personal charts AND potential targets for a TOP
This will either be one of the greatest calls of all time or one of the greatest cases of SHEER DELUSION..I'm responsible for my own trading so I'm fine with either outcome
Good trading to you all!
I am Heartbeat Trading..Activist Short Squeezer
