Learn How To Invest like a Pro in 24 Hours with this link

But b this represents severe vulnerability in the powder keg when it goes off and the mass calls get bought jacking the implied volatility premium making the fail to deliver reset dramatically more expensive and complex to right while sparking off a short squeeze enter vicious cycle whoa holy smokes folks you gotta be flipping my flapjacks it is official the wsb

Community has found the chef okay wall street bets on the shop i received a text message last night from a friend sends this over and my mind was blown okay and i’m about to go through everything here with you guys here today now most people watching this video they are probably long-term investors of the chef okay that’s my audience that’s a lot of us like we see

Eye to eye right we’re usually in stocks for long term however what we’re gonna go through today in this reddit post right is um some pretty crazy stuff around some short-term things going on okay and um i also thought this was kind of uh interesting my friend says the work that those uh wall street bets guys do is extensive they’re not amateurs they have access to

Bloomberg terminal think or swim i bet they’re professional investors from hedge funds that use wall street bets crew to pump up volume behind their ideas interesting okay that’s all i’ll say about that no one really knows uh for sure what what’s going on there but i will say you go through this post uh we’re about to go through and um it’s some higher level stuff

Yeah i hope you enjoyed this video as always i hope you enjoy me sharing this with you guys all i ask in returns that you smash that like button for the youtube algorithm i appreciate you guys as always if you haven’t you gotta check out hungrybo yet definitely check it out it’s on ios it’s on android uh people are absolutely loving it we’re just gonna keep making

That beast better and better and better tracking your stocks cryptos reading our daily newsletter earnings calls got sec reports coming very soon as well as live tick data so much more okay and also brand new course just out if you want to check that out how to invest like a pro in 24 hours or less check out the pinned comment down there i repeat the pin comment

Down there for that brand new course hope you guys enjoy a lot and uh without further ado let’s get into this already folks let’s get in this post okay ttcf the clock won’t stop oh man okay this was posted day ago yeah you had me excited already the clock won’t stop okay hello again up here is a tightly wound time bomb tdcf tattoo chef is a wildly asymmetric bet

With an options iv that is drastically which is implied volatility that is drastically underpricing the risk of trapped shorts closing one another out with a fun catch the higher iv goes the more shorts lose i’ve been watching this the past two weeks and now have some hard examples of shorts using illegal methods of delaying the inevitable an explosive move up

From the broker closeouts and spiking short constraints i’m confident in the move happening basically uh immediately okay or imminently so we’ll hit out some hard points asap a quick summary on ttcf outstanding revenue growth up 52 year over year i’m not sure you know outweighed tax uh liability loss they were they grew revenues last quarter 46 percent and then

Branded revenue 62 so i’m not sure where they got the 52 but anyways short borrow rates spiked to 200 to 300 percent one of the highest i’ve ever seen they say short interest at 61 percent of actionable float and 37 percent of entire float uh ftd panic reset the clocks are rampant sec a reg show list limits broker’s short deal ability float constrained to 24 million

Increased implied volatility and price catalyst for short capitulation now some of you would be like what the heck did half that say there okay don’t worry we’ll get more into that here we go a little meme okay short bear let’s reset the clock that’ll work great tell the exit strategy crook dealer uh you do have an angel strategy okay okay part one about tattooed

Chef create sustainable vegetarian vegan products and sell them to various chains and grocery stores think blue apron for millennials without delivery costs good food better profits from their 10 q they’re estimating close to 240 million revenue in 2021 they should be able to hit right around that number maybe a little beat we’ll see they have 140 million dollars

Of cash on hand read no dilution concerns yeah they shouldn’t need to dilute anytime soon if ever again honestly and they have gross margins of 13 no under institutions increase their holdings to nearly 20 honestly a pretty solid company ceo’s a pretty cool dude he says okay so why the big drop turns out there was a tax deferment payment okay of 47.22 mill they

See also  Amazon Stock DOWN 2 a share Today! - Amazon Stock!

Disclosed on q2 earnings on august 12th my theory this is their theory my theory is shorts we’re happening for or hoping is probably hoping for a much larger drop but also turns out the market didn’t care since the company has reported solid growth and will continue too so essentially the stock fell big initially so i think the market did care at least a little

Bit and then it bounced right back right a lot of longs like myself just picked up a bunch more shares for a bunch cheaper when it was down to 17 bucks 16 bucks like a lot of folks like myself we’re just buying more and more shares okay uh even after the insiders were allowed to sell in april the ceo only dropped 2.5 percent of his entire stake q by the dip and

Tightening of the float here’s where it gets fun during the small rally last week back to the balance cost to borrow increased times threefold shorts not only did not close but increased their positions ak all the shorts who open up are now trapped okay and they show some short interest changes here and around some of those numbers and whatnot okay part two massive

Short constraints a quick look at the options tape can tell you all you need to know about how deep the shorts are see part three but if you want to see the numbers here they are the float 40 million according to bloomberg institutions 15.6 million according to bloomberg s i 15 mil trading float 24.4 mill s i of trading float 61 not counting shortage shares ttcf is

Uh i’m never good at pronouncing this word so please don’t laugh okay peculiar peculiar is that good guys did i do well there or i need a little work on that one i’m horrible at that word because even in every case of a spiked 100 utilization the broad availability of the shares to short is a corresponding rally in price we’re there again but this time there’s a

Twist so in here they’re showing you kind of a little chart here on what’s going on here max utilization one max utilization two max three there they say not only do i expect high utilization rally at 25 to 50 higher than current prices we now have significant number of added short constraints prompting a higher move listing them now in addition to the utilization

Htb rally we now have one a smaller float due to institutional buys to crazy high ctb rate of 220 to 340 percent you know cost to borrow essentially okay number three reg show forcing closeouts of recent ftd shorts and higher occurring losses the higher the implied volatility goes the excessive short borrowing results in issues with clearinghouses and brokers

Namely these firms are loaning out shares they don’t have enter the sec and regulations show list okay tattoo chef showing up on there hmm okay so you know essentially we have a situation where it looks like there’s some fishy stuff going on from the short side okay and it looks like um you know i don’t want to say it could be set up for some sort of uh you know

Huge upward move but you know when you start reading into all this it’s like maybe there’s something here okay part three reset the clock right well they can try let’s have a primer what is ftd failed to deliver in resetting the clock periodically securities become hard to borrow and when there is large and persistent fails to deliver in the security end up on the

Threshold security list these situations give rise to pricing differentials in the options of the securities in the put call equation may appear out of balance which is in part a reflection of higher borrowing rates on the securities and we’ve seen some of that recently a lot of you know kind of releases from you know different uh publications that cover this have

Been definitely showing that okay reg show requires ftd failed to deliver positions resulting from short sale transactions to be closed out by a specific date okay okay in english ftds are when brokers can’t deliver short sales they normally have to close them on t plus three in order to avoid closing short bears are doing something called quote-unquote resetting

The clock to kick the ball down the road before closing out and paying 340 percent borrow fees that sounds ridiculous guys ridiculous now here’s a walkthrough of the reset playbook one short bear shorts ttcf at 340 cost to borrow and try for a five percent gain yolo two crook bear can’t deliver the borrowed shares three crooked bear is required to close out short

Bear on their third day t plus three four short bear doesn’t like this so they do a sneaky deal selling calls and buying put on non-oi options with crooked broker so they assign them making it look like they closed out for another three days five short bear hopes price goes down before he has to pay the 340 percent cost to borrow plus take the loss so keeps doing

See also  Making the Best of Moving Back Home | The Financial Diet

This what short bear do is doing is illegal according to this individual from what they’ve looked into the sec what the short bear is doing is illegal so in the off chance the sec ever does anything here’s your proof okay and they’re showing it here now as far as me personally okay i’m gonna give my opinion on what this means for the stock price and things like

That but in terms of you know knowing the parameters in the you know if this is for sure illegal i can’t personally say this is for sure illegal or something like that okay but what this individual is saying who they they seem decently educated let’s just put it that way okay um what they’re saying is what the the short bears here are doing is straight up illegal

And you know if the sec does anything you know they have what they believe is proof here of this essentially happening okay so very intriguing there okay these resets have been happening literally every day for the past week so why should you care well the sec tells us why trade a continues to execute a buy right reset transaction whenever necessary and by the

Time of the expiration of its original reversal it may have given up some of the profits in the form of premiums paid but it has maintained its short position without paying the higher cost to borrow or purchase shares to to basically make delivery right read the longer shorts do this the higher the implied volatility goes which equals the longer shorts do this

The more and more unprofitable it becomes not only does a this clock reset point to severe short constraints but b this represents severe vulnerability in the powder keg when it goes off and the mass calls get bought jacking the implied volatility premium making the fail to deliver reset dramatically more expensive and complex to right while sparking off a short

Squeeze enter vicious cycle one price goes higher forcing high borrow rates two shorts with high borrow rates try to reset the clock three reset the clock jack’s implied volatility higher making it more unprofitable four short start closing five price goes higher six repeat part four the play the run should start imminently repeated tests of the twenty dollar to

20.50 range result in huge panic short sales on thursday shorts responded to an attempted breakout by purchasing thousands of deep in the money puts in selling thousands of deep in the money calls for a stupid amount of premium didn’t work on friday massive share cells tried to defend against another breakout they say okay implied volatility is low enough to make

Substantial returns it would be lower if not for shorts resetting transactions but it’s all good because there’s ample ability to profit off their mistake here they say it you i’m assuming that says it’s supposed to say if you want to see what a short panic looks like look no further than the walls of bought puts in soul calls shorts placed on thursday to prevent

A breakout and they’re showing you know in detail here okay now and according to this individual their move is on all-time highs okay looks like they have basically september 17th 22.50 calls and it looks like they bought them at around 60 cents you’re looking for 800 percent return by exp you know uh but if if the the stock goes to 28 essentially okay they also

Have these september 17 25 dollar calls it looks like they paid 40 cents for those 1150 returns to be expected and they’re saying if the stock goes to 30 and then uh you know here we have october 15th 25 calls looks like they paid 65 cents for those 1400 returns if the stock goes to 35. cheers edit short bears still resetting here’s today let’s see if the oi exists

Tomorrow note 1.0 delta okay wow okay oh my gosh that’s a flipping my flapjacks let me collect my thoughts here already guys in in in terms of my thoughts here okay is sec going to get involved in any of this uh probably not okay uh you know tattoo chef is a one something billion dollar company it’s just you know it’s kind of unrealistic right you know this will

Kind of fly under the radar in my opinion okay now in terms of stock price here i will say this is this gets pretty darn intriguing because you have all this uh volatile mixture the powder cake as you call it right which is you know pretty darn intriguing uh from a short-term perspective that all this could you know blow up in a massive massive way and the shares

Could spike to some you know crazy numbers very very quickly and keep in mind tattoo chef is not a huge market cap so you know for this stock tulsa and go up let’s say 20 30 40 50 100 let’s say you know 100 might be a stretch but you know let’s say 30 to 50 percent in a matter of a few weeks it’s not another realm of possibility we just watched literally over

See also  Canadian Cannabis Company Cronos Group (NASDAQ:CRON) in Talks with Altria Group (NYSE:MO)

The past week tattooed chef go from 16 to 20 plus dollars so to imagine it going from also in 20 to 25 or 28 or something like that which if it went to 28 i believe that would be right back at 52 week high rate it’s not out of the realm of possibility also you got to think about like this right here’s the thing with tattooed shelf the majority of folks that have

Been buying the stock are holding it for the long term folks like myself that have seven figures in the stock right if tattooed chef goes to 28 tomorrow i’m not selling any shares of stock i don’t care okay if this stock goes to 30 tomorrow if it goes to 35 tomorrow i’m not selling i’m still holding right which makes it for a situation where you know the the buying

Pressure gets even more immense when the shorts are covering cover and covering then if you also have some longs that are opening up positions as well and the stock’s getting even more attention it makes for this situation in the stock where it just goes absolutely crazy in a short amount of time right and the thing is like there’s a lot of people like myself out

There that are that are longs in the stock that are in this for to become a 10 billion plus dollar company over the next five ten years right and so you look at it kind of like you remember remember tesla like one of the reasons tesla went up so dang much is because there was a lot of fishy stuff going on with the short sales covering cover and covering led to more

Covering more covering you know all of a sudden shorts going long enough coming around there was such a mixture there but also remember the core investor base at tesla are buy and hold not like oh we’re going to make 50 on the stock or 30 and then sell out right that’s like the majority of tesla shareholders those folks are in that stock for years and years to go

In the future and so if you look at a situation like this with tattoos chef you know a lot of us longs are are in this for years to go in the future we don’t care if it goes up 50 tomorrow we’re not selling right i’m not selling the stock it’s like cool it went up 50 i got a bunch more money in my accounts now awesome but it’s not like i’m like oh okay now i now

I sell tattooed chef or something like that right and so when you have that from the long side a lot of loyal longs who are in this for you know a 10 billion you know dollar plus opportunity and don’t care if it goes to 2 billion or 3 billion in the short term it is what it is right you know that’s where you get even more intriguing here and keep in mind if all

Sudden the stock starts spiking bigger and bigger it brings more uh kind of observation to the stock right which uh i mean the long term story for tattoo chef is extremely compelling i know this and a lot of you guys watching this video know this right uh but not everybody knows about tattoo chefs in stock in the stock market i tell you that much okay and a lot

Of funds don’t and if also in funds and remember i always said you know next year is the year where you know funds really start taking the stock serious as their their revenues continue to ramp as the company gets close to profitability as the the company is distributed and almost every store you want to possibly be in right next year is really that year and so

Funds also if the situation like this happens funds start recognizing maybe start getting in sooner and it makes for quite a situation here so anyways guys i would love to hear your opinion in that comment section as always i would love to hear your guys two cents on this what do you think about all this i definitely would love to you know uh hear you guys out on

This as well okay and uh yeah i hope you guys enjoyed this video once again if you want to check out that brand new course just launch how to invest like a pro in 24 hours less check out the pinned comment down there much love as always guys and have a great day

Transcribed from video
WALLSTREETBETS has found THE CHEF folks… By Financial Education

Scroll to top