I have a quick calculation of when Margin call may start for shorter of PLS
I use 25% as middle standards Margin Maintenance, depend on who and what lender use for Initial Margin requirement
and Margin Maintenance Margin call can start as low as 15% - 20% mark.
So, keep an eye on these prices, squeeze will start when margin call phone start to ring
Left hand size is the price stock short at
$5.00 -> Margin call $6.25
$4.80 -> Margin call $6.00
$4.50 -> Margin call $5.62
$4.20 -> Margin call $5.25
$4.00 -> Margin call $5
$3.80 -> Margin call $4.75
$3.60 -> Margin call $4.50
$3.40 -> Margin call $4.37
I say the sweet spot would be around $4.75 - $5.60 when the squeeze will begin, when squeeze begins, they all probably be forced to bailed
as it going up too fast for them to handle and start eating into their initial margin requirements. The one that want to stay in need some serious big account to fight traders and more hedge funds joining the squeeze.
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29 | 188018 | 2.780 |
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Price($) | Vol. | No. |
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