The Ghost Print Paradox

Hi Folks, it's Brandon.

Shorts are creating their own destruction, and they don't even realize it.

Something just clicked with me that I have to share immediately.

A trader asked why we're seeing such explosive call buying in high short-interest stocks like RGTI and QBTS.

The answer hit me like a freight train: The shorts themselves are buying these calls.

The Hedge That Backfires

Here's what's happening in stocks with 30%+ short interest:

Shorts know they're sitting on powder kegs. They've borrowed shares, sold them, and now they're terrified of unlimited upside risk. So what do they do?

They buy out-of-the-money calls as a hedge. Sell puts to finance it. Classic collar strategy.

But here's the paradox: That call buying creates the exact gamma squeeze that forces their short squeeze.

The Skew Tells the Story

Pull up any high short-interest AI stock. Look at the option chain. You'll see something the textbooks don't teach:

Call implied volatility rising as you move out-of-the-money
Put implied volatility falling as you move out-of-the-money

This is called positive skew. For most stocks, it's the opposite - negative skew pricing in downside crash risk.

But for squeeze candidates? The market is pricing in upside crash risk.

Why This Creates Explosive Moves

When shorts buy calls to hedge, they're not just protecting themselves - they're handing loaded weapons to market makers.

Market maker gets 10,000 call contracts at the ask? They have to hedge by buying stock. Stock goes up. More calls come in-the-money. More hedging required. More stock buying.

It's a positive feedback loop that shorts created to protect themselves.

The irony is beautiful: Shorts trying to limit their upside risk are actually fueling the squeeze that wipes them out.

The Data Doesn't Lie

I pulled up RGTI's three-standard-deviation moves over the past year. Want to guess how many times it exceeded that "statistically impossible" range?

Ten times.

Nine were to the upside. One to the downside.

The market says there's a 0.3% chance of breaking three standard deviations. RGTI broke it 19% of the time - and almost always up.

What This Means Right Now

First: Stop looking at high implied volatility as "expensive" on squeeze candidates. These stocks make frequent outlier moves that option pricing can't capture.

Second: Pay attention to skew. Positive skew (calls more expensive than puts) is your smoking gun for squeeze potential.

Third: The shorts are doing your homework for you. When you see massive call buying in high short-interest names, they're literally telegraphing the direction of crash risk.

The Ultimate Paradox

Shorts hedge their positions to sleep better at night. Instead, they're funding the exact mechanism that creates their nightmare scenario.

Every call they buy to limit upside exposure becomes ammunition for the gamma squeeze that forces their short squeeze.

It's not just ironic - it's systematic. And once you understand this paradox, you'll never look at squeeze setups the same way.

Join me Monday at 2 PM Eastern where I'll show you exactly how to identify these setups in real-time using the Ghost Prints console.

Talk soon,

Brandon Chapman

P.S. I've identified 3 new Ghost Prints showing the same patterns that led to MARA's 59% move (in four days). Sign up and you'll get a free Ghost Print signal, plus I'll show you exactly how I spotted these three opportunities using the console. Real-time setups, not old trades.

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The Ghost Print Paradox

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