BIG MONEY Buying Faraday TODAY - Is News Coming ?! │ NEW Faraday Short Interest is...🔥

Summary

In today's 'Trending Stocks' episode, the focus is on Faraday Future's (FAAY) stock, which is up 23.8% pre-market with no official news or SEC filings to explain the surge. The host speculates that the rise could be due to a large entity buying in, possibly related to a potential partnership or venture. The discussion also covers options activity, the possibility of a gamma squeeze, and short interest. The host shares their own small purchase and teases a future video on potential American OEM partnerships with Faraday Future.

Takeaways

• 📈 The stock 'Faay' is currently up by 23.8% pre-market, hitting a high of around 69 cents.
• 🔍 There is no official news from the company, no SEC filings, and the reason for the stock's rise is speculative.
• 📊 The stock has seen a significant volume of shares traded, with 46.68 million shares, which is unusually high.
• 💡 The video suggests that the stock's rise could be due to a larger entity buying in, possibly related to a potential partnership or news not yet disclosed.
• 💰 There was a notable transaction of $1.43 million, which likely contributed to the stock's increase in value.
• 📊 The speaker speculates about a potential 'gamma squeeze' scenario based on the current options activity and open interest.
• 📌 The short interest is increasing, with 349,000 additional shares, but the overall short interest is only at 6.49%.
• 📉 The short interest data is delayed, as it is based on a report from June 14th, and the current short interest might be different.
• 🤔 The speaker plans to investigate the source of the large transaction to potentially identify the buyer's location for further insight.
• 🚀 The speaker bought a small amount of the stock at 56 cents, indicating a personal belief in its potential.
• 🎁 A promotional offer is mentioned for new account sign-ups, offering five free stocks valued up to $2,000 each, valid until July 31st.

Q & A

What is the current performance of Fairy Future's stock in the pre-market?

Fairy Future's stock is currently up by 23.8% in the pre-market, hitting a high of around 69 cents.

What is the trading volume of Fairy Future's stock as mentioned in the transcript?

The trading volume is significant, with 46.683 million shares being traded.

Is there any official news or SEC filings that could explain the stock's performance?

No, there is no official news from Fairy Future or any SEC filings that could account for the stock's performance as of the time of the video.

What does the speaker believe could be driving the stock's increase?

The speaker speculates that it could be a larger entity buying the stock, possibly related to a meetup or other undisclosed news or partnership.

What was the significant transaction mentioned in the video that influenced the stock price?

There was a transaction for $1.43 million that occurred, which likely contributed to the stock price increase.

What is the sentiment of the options market for Fairy Future's stock?

The options market sentiment is bullish, with 51% of all options being done today being optimistic.

What is the potential impact of Fairy Future's stock closing above 50 cents on market makers?

If Fairy Future's stock closes above 50 cents, market makers may go on to cover their positions on Monday, potentially leading to a gamma squeeze.

What is the current short interest in Fairy Future's stock?

The short interest is at 6.49%, with an increase of 349,000 shares being shorted.

Why might the short interest percentage seem low despite the increase in shorted shares?

The short interest percentage may seem low because the data is based on a delayed report from June 14th, and the actual shorted shares have increased since then.

What is the speaker's personal action regarding Fairy Future's stock?

The speaker bought a small amount of Fairy Future's stock at 56 cents or 55.5 cents.

What is the promo mentioned by the speaker for new account sign-ups?

The promo offers five free stocks to new account sign-ups with a minimum deposit of $100, with each stock valued up to $2,000, valid until July 31st.

Outlines

00:00

📈 Stock Surge Analysis - Speculation and Trading Activity

The video discusses the sudden surge in the stock price of a company, currently up by 23.8% in pre-market trading with significant volume. The host speculates on the reasons behind the rise, noting the absence of official news or SEC filings that could explain the increase. They delve into the possibility of a large entity buying shares, referencing unusual options activity and a significant transaction worth $1.43 million. The video also touches on the potential for a gamma squeeze, given the current open interest in call options, and the implications for market makers. The host provides an analysis of short interest, noting an increase in short positions and explaining the discrepancy between reported short interest percentages due to delayed NASDAQ reports.

05:00

🤔 Investor Sentiment and Market Speculation

In this paragraph, the host continues the discussion on the stock's performance, focusing on investor sentiment and market speculation. They mention the short score and cost to borrow, indicating a decrease in borrowing costs compared to the previous day. The host shares their personal investment decision, having bought a small amount of the stock at 56 cents. They invite viewers to share their thoughts on the situation and whether they believe a significant partnership or venture could be behind the stock's activity. The host also hints at a future video discussing potential American OEM partners for the company and mentions a promotional offer for a stock trading platform, valid until the end of July.

Keywords

💡Trending Stocks

Trending stocks refer to shares that are currently receiving a significant amount of attention and are experiencing notable price movements. In the context of the video, 'Trending Stocks' is the theme of the channel or series, where the host discusses stocks that are actively moving in the market. The script mentions 'Trending Stocks' to introduce the topic of the video, which is about the stock of a company called 'Fairy Future' that is experiencing a surge in its share price.

💡Pre-market

Pre-market trading is the period before the regular market session begins, during which investors can trade shares outside of the standard market hours. The script indicates that 'Fairy Future' is up 23.8% in pre-market trading, which suggests that there is significant buying interest before the official market opens, contributing to the stock's trending status.

💡Volume

Volume in the context of stock trading refers to the number of shares that are traded during a given period. The script mentions a high volume of '4668 3 million shares being traded,' indicating a very active trading environment for 'Fairy Future,' which is a key factor in its trending status and price movement.

💡Dilution

Dilution in stock terms refers to the reduction in the ownership percentage of existing shareholders due to the issuance of additional shares. The script discusses 'excessive dilution' as a potential reason for the stock's price movement, suggesting that the company may have issued new shares or warrants, which can impact the stock's value and trading dynamics.

💡Conversion

Conversion in financial terms often refers to the exchange of one type of security into another, such as the conversion of convertible bonds into shares. The script mentions 'conversion' in the context of dilution, indicating that a certain security, possibly warrants, has been converted into shares, affecting the stock price.

💡Entity

In the context of the script, 'entity' refers to a larger organization or investor that is speculated to be buying significant amounts of 'Fairy Future' stock. The host suggests that the stock's price increase could be due to large entities investing, as evidenced by a transaction of '$1.43 million,' which is a substantial amount that likely comes from a significant investor.

💡Options Activity

Options activity refers to the trading of financial instruments known as options, which give the holder the right, but not the obligation, to buy or sell an underlying asset at a set price before a certain date. The script mentions 'abnormal options activity' and 'big money getting in,' indicating that there is significant interest in options for 'Fairy Future,' which could be a signal of upcoming news or a change in the stock's direction.

💡Gamma Squeeze

A gamma squeeze is a term used in options trading that occurs when a rapid increase in the price of the underlying asset forces market makers to buy more of the asset to hedge their positions, which in turn can drive the price up even further. The script discusses the potential for a 'gamma squeeze' in 'Fairy Future' if the stock price closes above certain thresholds, indicating a possible scenario where the stock price could increase rapidly due to options market dynamics.

💡Short Interest

Short interest represents the total number of shares that have been sold short but have not yet been covered or closed out. The script provides a 'short interest' of '6.49%,' which is a measure of how much of the stock's float is being sold short by investors betting that the price will decrease. This is relevant to the video's theme as it indicates a level of bearish sentiment among some investors.

💡OEM

OEM stands for Original Equipment Manufacturer, which refers to a company that produces components or equipment that are used as parts of a product which is then sold by another company. The script speculates about a potential 'American OEM' being a 'bridging partner' for 'Fairy Future,' suggesting a possible business partnership or collaboration that could impact the stock's performance.

💡Promo

A promo, short for promotion, is a marketing strategy used to attract new customers or encourage existing ones to make a purchase. In the script, a 'promo' is mentioned as a deal where signing up for a new account with a certain amount of money results in receiving 'five free stocks,' each valued up to '$2,000.' This is a marketing incentive offered to viewers, likely to encourage engagement with a trading platform.

Highlights

Faraday Future's stock is up 23.8% pre-market, hitting a high of around 69 cents.

The stock has seen high trading volume with 46.683 million shares being traded.

No official news from Faraday Future or SEC filings have been reported to explain the surge.

Investors are speculating on various platforms for news, with no concrete information found on LinkedIn or YouTube.

The stock's performance suggests a large entity might be buying, possibly related to a recent meetup or undisclosed news.

Abnormal options activity was observed with significant volume, indicating big money investment.

A transaction of $1.43 million was made, contributing to the stock's rise.

The speaker suggests that the large transaction indicates more than mere speculation.

There is a discussion about the potential for a gamma squeeze due to the current open interest in options.

If the stock closes above 50 cents, market makers may cover their positions, leading to a potential squeeze.

Short interest is increasing with 349,000 shares, while the overall short interest is at 6.49%.

NASDAQ reports disclose a delayed short interest of 6.39% as of June 14th, which is updated by platforms like Ortex.

Short utilization is high at 95.32%, with a short score of 62.84 and a borrow cost of 12.08%.

The speaker plans to investigate the coding for the large transaction to possibly identify the source of the investment.

There is speculation about a potential joint partnership or venture involving Faraday Future with an American OEM.

A promo is mentioned offering five free stocks valued up to $2,000 for new account sign-ups with a deposit of $100.

Transcripts

what is going on welcome back to

trending stocks today want to talk to

you about fairy future got another

interesting day on our hands currently

up

23.8% pre-market kind of Hit the high of

around looks like 69 cents I want to

break it down on what is really driving

it higher and go over everything else

you need to know but first make sure

guys hit that thumbs up and with that

let's get right to it so like I said

currently up

23.21% a lot of volume so 4668 3 million

shares being traded 38 H the average

about to head into Power Hour right now

no official news from faay no SEC

filings nothing along those lines and

it's kind of funny that I've never

really invested in a stock that you have

to go around to various different

platforms to look to see if there's news

so I checked out LinkedIn absolutely

nothing no new YouTube channels no no

new posts from Faraday's website and no

new posts on yts so as of right now

there's absolutely nothing to go based

on just speculation so a lot of people

are kind of saying that it's this and

it's that based on my video yesterday I

did say it could be one of two options

and that today was going to be a big day

to kind of determine which one it was

because normally whenever a company is

excessively diluting and that's no fault

of the company it's just them issuing

warrants and it's that conversion

that does really kind of damage the

stock like that again is no fault to the

company the conversion and when that

does occur but usually that does result

in a spike but the following day it does

tend to go down so the fact that it's

actually holding its gains is fair to

assume that it is some larger entity

that is buying I don't know if it has to

do with the Meetup uh that did happen or

maybe there is other news that they're

privy to or there's some partnership

because two days ago I brought up

abnormal options activity yesterday that

was an amateur amount of volume that was

true money big money getting in and even

today first thing there's been quite a

lot of volume like I already pointed out

but if you do look right here there was

one transaction for

$1.43 million that was done first thing

and obviously that's what caused it to

go up so in reality why is it going up

anyone's guess anyone saying that they

know a definitive answer is just

speculating is or I can't even speak

speculating right now this is why I like

to look at the data numbers don't lie

someone bought and I don't think someone

would throw like 1.5 million at a spec

play something like that so I don't know

what's your thoughts on that a lot of

people are bringing up about it being a

potential gamma squeeze so right now 1.7

million in calls 400 38,000 inputs

sentiment wise 51% of all the options

being done today are optimistic and

bullish and this is the current open

interest so as I've said in the past

come Friday if air is able to close

above 50 cents then you're going to see

market makers go on Monday whether it be

pre-market or during the trading day go

cover these um so they're going to be in

the money so 32,000 at that 50 Cent trik

price and better yet somehow in the next

day day and a half if faray is able to

get above $1 then this 22,000 is also

going to be bought on the open market so

this is where you could get nice little

bit of a gamma squeeze I think two weeks

ago that was ideal though because that

was a monthly chain rather than just a

weekly chain but still regardless it

doesn't really matter because that's

some pretty kickass stuff right now just

to give you a quick overview on shorts

they're increasing 349,000 shares and

I'm sure some of you might be wondering

what the why is the short interest

only 6.49% well let me break that down

for you so going over here two times per

month that's when the NASDAQ does

disclose the true true numbers through

reports it's always delayed it's a

messed up kind of scenario but yesterday

was one of those reports and it was as

of June the 14th so like I said it's

delayed and so what ortex does and many

other platforms they take this

information so as of June the 14th there

was

27.84 Million shares being shorted and

that does work out to be that

6.39% so that's kind of where that comes

from so when it comes to ortex they take

this information and calculate it up to

today's date and like I've said over

this last little bit shorts haven't

really been doing all that much over

this last week so this is why you do get

this short interest right now of 6.49%

utilization still fairly high so 95.3 2

and then short score is 62.8 4 cost to

borrow average is a little bit lower

than yesterday so it is sitting at

12.08% so yeah all in all pretty

interesting day uh let me know your

thoughts if you are a buyer if you are a

seller and why do you think that a big

entity is getting in as I said yesterday

the whole Bridge wouldn't be kind of a a

joint partnership or venture

that would be created that would be a

true partnership with Faraday and and

like for instance American OEM I was

intending on doing that video today but

given what has been happening with faray

I decided to push that tomorrow so

tomorrow is going to be more of a which

OEM American OEM could be that bridging

partner um so maybe this could be that

money big money is getting in could be

correlated with the UAE uh later today

I'll go on my uh other um account right

now and kind of find out the coding for

that one big transaction just to see

exactly where they are located from

because that might give some insight on

where it is but the only problem with

larger entities from the Middle East

they usually like to use kind of big

Banks um kind of to Route it so it might

be somewhat difficult so nonetheless

beside the point fun day uh very very

fun day I did buy a very small amount

not anything to write home about but I

did buy in today at 56 cents or 555 or

something like that so yeah I'm pretty

happy what have you been doing don't

forget to hit that Thumbs Up And

subscribe one final thing take advantage

of this promo simply sign up for a new

account throw $100 at it and they give

you five free stocks each stock is

valued up to $2,000 kickass deal this is

only up until July the 31st with that

said appreciate all of you watching