For the upcoming options expiration for MSOS (AdvisorShares Pure US Cannabis ETF) on May 17. There's massive open interest in calls, in far otm but also particularly at the $10 and $11 strike prices.
Right now, MSOS certainly can push past $10, and it could trigger a significant amount of buying pressure by a type of onrunning gamma squeeze, a ramp has already been set all the way to even 18-19, see for yourself.
Note – there is large OI on puts at $10. If $10 MSOS is cleared – market makers will let up their hand and remove their hedge, causing further significant buy pressure.
The DEA set to move cannabis to schedule 3 – the tax savings significantly re-rates the sector from a cashflow perspective that is yet to be fully realized, MSOS and cannabis will dominate the news cycle through the coming months. They outperformed Q1 with even more incredible oligarchical stage setting.
The last pop on the AP news reporting schedule 3 had short sellers scrambling to prevent the rally – You could see them sweating and on a macro scale this squeeze season I highly suspect they are significantly over-leveraged at the moment.
A modicum of buying could see an easy 10-20%, I see it touching $14 by next month if presented with a heavy retail rally. With it being ape season, the retail demographic is primed.
