GO (Grocery Outlet) Turnaround Is Working + Insiders Bought Heavy + 26% Short Float

**My thesis 4 months ago was simple:** management was sandbagging, 36 bad stores were being cut, sticky inflation would push consumers toward discount grocery, and insiders were buying aggressively.

Since then:

* **36 underperforming stores closed**, removing roughly **$12M of annualized EBITDA drag** heading into 2027.
* **Q2 beat expectations:** traffic +1.8%, basket trends improved, EBITDA held up, and guidance improved.
* **Insiders bought millions.** CEO Jason Potter alone bought roughly **$2.4M**, mostly around $5.90 to $6.36. Directors also bought heavily.
* **They’re still buying higher.** Director Carey Jaros bought **15,000 shares at $11.70** in August, after the stock had already nearly doubled.
* **\~24.5M shares are still short, roughly 26% of float.** Borrow is still cheap, so this is **not a squeeze yet**, but there is plenty of fuel if fundamentals keep improving.
* **Technicals just improved:** GO spent weeks capped around **$12.40 to $12.45** and is now trying to break that range.

This is no longer just a “survival” trade. The market is starting to price in an **actual earnings turnaround**.

**Positions:**
Oct 2026 $7.50C
Jan 2027 $17.50C
Apr 2027 $14C