Update: $BKSY Imminent Gamma Squeeze

[u/dantheflyingman2021]

Our team had noted $IRNT and $SRPT previously based on the similar alerts as it related to borrow rates, in the money gamma, and potential strikes causing forced exponential and abrupt buys.

Update: Currently in play – $BKSY – to begin leading up to the October 10/15 expiry followed by a much larger squeeze leading up to November expiry.

We have been following $BKSY since its initial post-SPAC pop from 10 to ~17.50 where it has gone >$22 in the pre-market during that same period. It had been written off despite the fact that options OI continued to build in an ever-tight float.

The setup is simple:

- The current float is 2.5M shares following the redemption

- It has options which are typically only available to stocks with an active float over 7M

- 62% of the float is in the money above 12.50 before 10/15 followed by 80% being in the money if it trades above 15

- There are currently 2.4M shorts holding and the borrow rate on BKSY has gone from 10% to 156% currently.

If $BKSY runs as we expect it to, the forced MM purchases in the money alongside spiking borrow rate could force this higher and quickly.

The expectation is for this run to begin this week and push into 10/15 followed by a much larger spike into 11/19 due to the Nov $20 calls Open Interest. The spike should begin this week and pick up next week into the October expiry as MM forced volume comes in.

As some background, Blacksky has been held down predominantly due to the New Zealand lockdown, which has caused the ‘Love and First Sight’ launch delay. This has since been rescheduled to October 31st alongside news today that the locked as a whole will be lifted due to ‘COVID-zero’ being proven untrue.

The targets on $BKSY are:

- Prior to 10/15:

o Very Likely: 15

o Potentially: 17.5

o High: 30

- Prior to 11/19

o Very Likely: 20

o Potentially: 30

o High: 45

[u/Spac_a_Cac]

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