Swaggy's Top Stonks - Hot Stocks Analysis
Swaggy's Top Stonks - Hot Stocks Analysis
Swaggy’s Top Stonks. We compile and analyze data from multiple sources bringing you the top trending tickers from around the internet. If you haven’t subscribed already, please do so below.
Swaggy's Top Stonks
Together with... Vig
September 26, 2021
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This Week's Letter
Sentiment Report w/ Unusual Options Activity
Trending Tickers
Sentiment Report + Unusual Options Activity
Lots of momentum plays over the last few weeks and we are finally seeing alternative tickers gaining popularity. I say finally because some of these plays present an opportunity without risking it all on FOMO. Today I'm going to break down some of the top tickers mentioned on WSB this week, some unusual options activity to go with it, and even some charting and GEX (Gamma Exposure).
Before we begin, unusual options activity and charts are provided by Vig. As I am an affiliate for them you can use the code SWAGGY10 on the web-app to receive $10 off per month, forever. They also have a mobile app with a very smooth interface, so check it out.
Note: I've been authorized to do another raffle for a free 90-days premium subscription to the Vig platform. If you didn't win on the last raffle you'll have another chance in exactly 2 weeks! Get on the free trial to get acquainted with the platform and add another tool to your investing tool-box.
As I monitor unusual options activity almost daily I've noticed my list of high-short interest stocks have been consistently accumulating bullish flow over the last several weeks. Here's a quick glance at Friday's UOA sentiment.
Bullish flow was hitting the tape through and through each day this week.
Next, I want to look at two stocks that caught my attention from the list of most mentioned stocks on WSB this week.
The first is SmileDirectClub (SDC), which has very quickly become one of WSB's main choices for "short-squeeze" stocks. I think it's worthwhile to mention, speaking anecdotally of course, that although there might be "favorite" short-squeeze stocks, a lot of them tend to move in tandem with each other. It's almost as if the entire group get's lifted from one stock's sentiment.
Here's the chart.
This stock has been hammered over the last 8 months. Short-interest currently above 30%, which is very high, and pressure from positive GEX and options in-flows make this a prime candidate for squeeze*. *This is my opinion only.
Here's the Gamma Exposure chart.
The share price (blue line) is sitting at the cusp of forced buying pressure (green bars) to the upside, especially the $7 level.
A lot of people believe WSB to be a group of clown-traders that lose money, which may be correct, but I give them credit for finding stocks with the highest "possibility" of exponential gains. These plays usually come equipped with very high risk, so always do your own research before entering any positions.
The next stock I wanted to look at was BlackBerry (BB). BlackBerry reported a very lackluster earnings last week, but the share price still took off to the upside. In tandem, WSB sentiment also rose to the same levels. Shares of BB initially rose 15% intraday after the earnings report, but ended up closing the week only up 9%.
After the move up this week the share price is still nowhere near the highs from earlier this year. In fact, if you zoom the chart out it seems like the stock price didn't even change this week. I also highlighted two similarities in the chart that caught my attention.
History doesn't repeat itself, but it often rhymes... Are we entering a third yellow box? This is a question nobody will have a clear answer to, but I see a few reasons why I personally might enter a trade on BB next week.
The patterns in the chart are extremely similar and may be setting up for another squeeze.
Over the last 8 months BB has shown very strong support at $8/9/10 levels. The risk on this stock may be $2 to the downside, or 20%
Going off the chart, potential upside here may be back to $15 or more "if" (big if) it squeezes again.
Due to the reasons above, the risk-to-reward for my personal tolerance is in my favor*.
The GEX chart, as posted below, is setting up for buying pressure above the $10 level.
*Keep in mind these stocks can be very risky so please do your own DD before entering a position.
Unusual Options Activity - Scans
Before I conclude today's report I wanted to add screenshots of some of my favorite scans from the Vig platform: The Russell Fire Calls, and Roaring Kitty Calls.
I like the Russell calls because I can see where some is in small cap stocks. I have a lot of blue chip tech stocks in my long-term portfolio, so for swing trades I like looking into small caps and find the setups I like. Take this list for what it is, but if you see something that catches your attention check out the company profile and chart to see if it fits with your trading style.
The next scan, Roaring Kitty Calls, is also one of my favorites because it displays large blocks of calls being purchased where volume is 5x or more of the daily average (hence, unusual). You'll usually find a list of popular names, but the ones that catch my attention from this list are:
TDOC: The chart has shown a mid-term bearish trend.
DKNG: This chart has completely broken down with a 20% move to the downside in just 2 weeks.
Are dip buyers rolling through these names?
WallStreetBets - Most Mentioned Equities
Some of you may have noticed an enhanced UI and capabilities on the SwaggyStocks website. On the main ticker-sentiment chart you can now look at data from:
"today only" (last 12 hours)
rolling 24 hour period
and from the last week
Here's a snapshot of it instead of our usual top 25 tickers list.
Below the chart is also a quick-link to view each ticker in the Swaggy Terminal for a more encompassing view on sentiment.
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