/biz/ - Business & Finance

>>20056361
Yeah so when it dips in the morning you have several plays to make

1) Sell puts (increased price from the dip)
2) Buy calls (decreased price from the dip)
3) Buy the stock (decreased price)

Time passes & daily shorts have to re-buy the shares due to obligation / stock inches up - the short volume is increasing every single day, which is why you're seeing squeezes up every day randomly.

The squeeze will bring up call prices so you open covered call sells, buy back the puts (if you want) because puts will have gone down in price and calls will have gone up in price to match the stock trend

Pic attached: short obligations, interpret this however you will