I would love some help with this one as I’m honestly not sure what I’m looking at and I cannot find a lot of information on this ticker. I’ve asked a few people in the server about it and either do not get a response or they agree that there is not a lot of information for FATH.
FATH first popped up on my scanner for unusual activity. When I looked at the chart, it was tanking but OI is what I would consider decent.
The 14A was filed on September 7th, so I’m hoping we get a new one soon. That had the following:
As of August 23, 2021, of the 1,060,778 shares of the Company’s common stock reserved for issuance under the 2019 Plan, only 370,743 shares remained available for future grant. The Board believes that the increase in the share reserve is necessary for the Company to continue to attract and retain the highest caliber of real estate agents and employees, link incentive awards to Company performance, encourage employee ownership in the Company and align the interests of our real estate agents, employees and directors with those of the Company’s shareholders. Increasing the share reserve will allow the Company to continue to provide a variety of equity awards as part of the Company’s compensation program, an important tool for motivating, attracting and retaining talented real estate agents and employees and for creating shareholder value. It supports the Company’s balanced approach to agent and employee compensation, wherein the Company uses a mix of components, including equity awards, to facilitate management decisions that favor longer-term stability. If the additional shares are not approved, the Board believes that the remaining shares of common stock reserved for issuance under the 2019 Plan, will be insufficient to accomplish its purposes.
As of June 30, 2021, approximately 234 employees, 6 non-employee directors and 6,950 agents were eligible to participate in the 2019 Plan. The closing price of the Company’s common stock on the NASDAQ Global Market on August 23, 2021 was $28.31.
This was all the information I could find between the options being added to the ticker on December 27, my scanner picking it up on December 28 and today.
I don’t know if I’m missing something or what but if anyone wanted to take a look at this and let me know what they think I would sincerely appreciate it.
The float looks to be correct, however, I think the earnout provisions need a closer look on this specific one. There is a couple paragraphs I read last night that seemingly exclude parts of the lockup shares if an amount of the stock is sold or something of that nature. It was however late and I was skimming.
As for this setup, 2,300,000 shares makes it larger than ESSC, to our knowledge, by a decent margin.
Current ITM OI sits at 2% of float, which increases to 19% over the next strike and 54% for the whole chain, so not completely empty but somewhat far from loaded.
Right now FATH has a major issue in it’s sparsely packed OI and wide strikes. Roughly all the volume is heading OTM on strikes that are almost $2 out of the money, but, even if all that volume were to stick today, it wouldn’t probably provide enough pressure to significantly move the underlying to or above the next strike.
Watching this one, but it’s currently not a gamma squeeze, any super bullish movements can reasonably be assumed as being retail pumping at this point.
7.5c OI has been very small, especially in comparison against the 7.5p, which now being ITM should serve as a large wall against a gamma squeeze upwards, I think, since the puts allow for delta-hedging in the downward direction.
Looks like FATH has the potential to be a gamma squeeze but severely lacks the OI to do it, at this time. Needs to build a shit ton more call OI between 5c to 10c. Good to keep an eye on.
This is live again. Full disclosure, I’m privately tracking the OI movement and have a very small position in FATH. I’m skeptical on this play currently.
I’m going to start by reposting a warning that @tedro stated in #trading-floor today when asked about this play again today:
"We talked about it yesterday in VC. I made the original DD but it was looking like a pump and dump setup and I didn’t realize that sentiment until after I wrote up the DD. I moved it off the DD forum section and tracking the OI to see if things change but FATH currently does not have a good setup.
SPACs are hot right now and ESSC is obviously a big discussion point so people might see us talking about FATH and buy in when it is a bad setup right now."
The setup is indeed not ideal at the moment as at first look of the option chain for 1/21/22 expiry, most of the open interest is on the $10 strike. FATH ended trading today(before after hours) at $5.66. This means the 2 important strikes are OTM right now. Perhaps if it can claim the OI on the $7.50 strike ITM in the next week, we might have a play on the table. No positions at the moment for me.
This is probably sitting in the worse place right now with almost 0 ITM OI, between 2 far away strikes. The drop below 6 was a good thing in my eye. What I would think as a best possible scenario here is a couple days of consolidation at a $5 support level. That would provide a roughly $0.4 price for the 5c, which could finally see meaningful accumulation at that point. In that case higher strikes would likely remain intact as they wouldn’t receive any bids, and 7.5c could also see a good accumulation at $0.05-.1 level leading into opex week.
No position in this currently either, but keeping an eye on it too.
@tedro I started looking into the SEC filings, it appears you were looking at FATHOM HOLDINGS INC. (FTHM) instead of Fathom Digital Manufacturing Corp (FATH).
This one was trickier to just even find their redemption figures vs many other SPAC plays. Having it as a separate link it the EX-99.1 on their 8-K had me digging for a bit.
But yeah pg 16 of the filing. We see the potential float.
FATH is definitely not a gamma at this specific point for those wondering. The chain isn’t well developed enough and the strike spacing pretty much dooms it to doing this sorta thing where it jumps and dies. Retail may continue to try to pump it, but it’s got a long way to go before it becomes a legit setup.
I jumped in this one, from the quick scalp standpoint - I think it is worth a high-risk (5%-10%) here and there scalp if you can catch it the right time -
To be clear, FATH is share pump and not an options related gamma movement. It still suffers from the same core issues it had the last time, which is the gap between the 7.5 and the 10 strike and the extremely small ITM OI under the 7.5. This can be likened to PROGs continued failures in the same price range (as in PROG kept failing in the same prices it had previously failed, not that PROG was trading at the same price as FATH). What is happening is that the underlying hasn’t consolidated low enough and for long enough to gain the needed ITM OI to continue to bridge the gaps between the 7.5 and the 10. You’d like to see the volume on the 5 and 7.5 if this movement were to succeed, but that has never happened. Instead of getting volume on an ITM strike and the next OTM you’re splitting it between two OTMs.
What will likely happen is that FATH is going to fail to hold 7.5 just as it did the first time and come back to earth. I’m unaware of how long the float on this remains small, but I think it’s safe to say that while it’s a candidate to be a large runner in the future, this is not the time it will be one.
