Making this to share information on $DNAA - the lowest optionable float ever (that we know of)
Redemption numbers came out after-hours with only 227k shares remaining in the float, they also released PR at around 1pm confirming they would not allow reversal of redemptions, so this should be in play until the S-1 is filed and takes effect.
Option chain is there, extremely empty at the moment but wouldn’t take long to get some crazy OI on this thing. Share price already super jacked up on price at the time of writing however.
Note that there are rumours of possible share unlocks on this thing so the float may not be accurate anymore. Be sure to do adequate research before considering a position!
Ok putting this in the forums rather than on TF where it will disappear:
The Sponsor is subject to the Lock-Up Agreement. The earliest possible date the lock-up period could end is 30 days after today, so September 18, 2022, unless the board of directors votes to end the lock-up period earlier. There is always a risk that the price could remain elevated and the Sponsor could get board approval to sell its shares.
There are other scenarios where the lock-up period ends (shares trading above $12.50/share or $15.00/share) but those are all qualified with no earlier than 30 days after the closing date. Since the closing date was today, that 30 days ends after September 18, 2022.
I wonder how the OI is now that big news dropped and it’s up over 200% AH. Hopefully someone smarter than me can elaborate on this since we might have a potentially very profitable continuation play and something like a gamma squeeze idk
I don’t think there will be much of an OI built up on Monday, but my intuition tells me there should be profit-taking Monday premarket and market open, and then from there it’s anyone’s guess. And with such a low float this will likely move dollars per candle.
What we had settled on at the time was that they weren’t supposed to sell but had anyway. It was kinda the only thing that explained why the other backstops held.
Yeah I think at this point this is a de-SPAC play that does not have sufficient OI built up for a gamma squeeze, but it is highly volatile because of the low float. I think that, absent any new information next week, you would want to treat this like any quick scalp play: look at support and resistance, tight stop losses, cover cost basis quickly, let profit ride if you’re feeling frisky.
Options on this will be wild on Monday morning so please don’t jump straight into options because IV will be extremely high. If you’re going to play options on this (and I personally don’t think that’s a great idea), ITM is always safer and same rules apply that apply for quick scalps.
I’m sure we’ll be monitoring this to see if sufficient OI develops in the near future because the next 29 days could be spicy, but not currently a gamma squeeze play.
Be wary of a potential share unlock on this being reported from several sources on twitter before taking a position. Not to mention sentiment is in the gutter after the massive tank from highs, and the chain is still awful in terms of liquidity.
Will update upon the confirmation of any possible dilution in the coming days, and in addition monitoring the activity on the chain before I’ll be able to even consider a potential position in the future. Be careful!
