Positions have adapted slightly since my previous post but I’ll be long NBIS for the foreseeable future, conservatively targeting $65 a share.
PCR is around 0.3, with most OTM volume around $38 and $40 strikes.
This plays into the resistance at 38. The next major expiry comes into play on Feb 21st, with open interest largely concentrated around these two strikes.
Past this date, $40 strike continues to represent a large portion of open interest, and represents the next major call wall.
As for Feb 21st, This is one week after earnings, which should (hopefully) provide much more insight into the KC GPU Clusters which are scheduled to go live in Q1.
Combined with the expanded capacity at their data center in Finland, and the newly introduced H200 GPUs, there should be lots of ammunition to increase bullish sentiment and expand analyst coverage.
At the current liquidity levels, it looks to me like the stage is set for a gamma squeeze at 40, barring a negative catalyst in the short term.
With a firm as pessimistic as Citron being openly bullish on the CEO, I think there’s reason to be optimistic that they will deliver on schedule with the KC facility, and set the stage for continued investment in infrastructure through 2025.
This should drive the price significantly higher.
https://preview.redd.it/d73x0jr4xgde1.png?width=971&format=png&auto=webp&s=cb68b045544f4be155d30f3861d665dc181139fd
4 45C May 16
1 42C May 16
72 Shares
https://preview.redd.it/v40uws6gvgde1.png?width=686&format=png&auto=webp&s=ddcdca37665a344acb4ce7f616798d238e94471a