$SST / System1 - The Stock That Will Make You Feel Like It's January 2021

Note: Please excuse the WSB-esqueness of this post as it was originally drafted for Wallstreetbets, but since they are not allowing SST posts and *STILL* nobody is talking about this ticker I wanted to at least put it out to some audience as this play gets more and more damning by the day all the while completely flying under everyone's nose. I think all of us here at r/spacs are aware of the mechanics and very high risks of redemption squeezes so please! Always remember to manage risk first and know what you are working with here. ​ ​ Hello my fellow degenerates, it’s me, your biggest degenerate, the one who got lucky being one of the first to buy AMC calls during the whole 2021 ape bonanza- before it was cool, making a cool few mil overnight with AMC calls. (Visit if feeling nostalgic: https://www.reddit.com/r/wallstreetbets/comments/ld1wio/i_probably_should_have_sold_if_i_was_a_pussy/) I have since been freely living the degenerate life in and out of the market all the while looking for and waiting, very patiently waiting for the next big thing. Now, before I go any further, I know you probably think you've heard it all. Everything is a "squeeze" nowadays and you immediately tune out once the term even comes up as it has completely lost its meaning to anything short of pump and dump. I urge you to drop what you've heard the past year, put every burnt out association with the label 'short squeeze' out of your mind for just one second, and hear me out. I hereby present to you a ticker that goes by the name of $SST, or System1. SST (previous ticker TREB) is a de-spac which means it merged with a special purpose acquisition company (Trebia Acquisition Corp) and had the majority of its public float (51,750,000) redeemed upon merger (99% to be exact). As per their 8-K on Feb 2, 2022: "51,046,892 shares of the 51,750,000 outstanding shares of Trebia Class A Common Stock were redeemed in connection with the Business Combination." https://sec.report/Document/0001193125-22-025942/ You may have heard of the 'de-spac squeeze' before (which occurs due to retail latching onto the shrinkage and lack of liquidity of the float, 'squeezing' it), or maybe even specifically, IRNT, another de-spac widely publicized on here in September, which then squeezed from $8 - $47.5. SST has a public float of just 703,108 shares, one of the smallest de-spac floats EVER just after ISPO (256,408 - squeezed from $9 to $108), ANGH (243,000 - $8 to $33.13), EFTR (521,358 - $8 to $40.42), and AGIL (567,373 - $9 to $36.13). None of the stocks mentioned above, minus IRNT had options. Now, allow me to introduce the gamma component. ​ The Gamma Squeeze IRNT, unlike the others mentioned above, had a post-redemption float much to the higher side, of 1,381,162. The reason IRNT was able to squeeze so high with a relatively large float (compared to its squeeze peers), is in major part due to the gamma factor. The IRNT options chain had been loaded with thousands upon thousands of OTM calls, and as the price surged, MM's were forced to hedge for these calls, and due to the tiny float, this resulted in an insufficient amount of shares to be found for hedging, creating a snowball effect that 'squeezed' the price higher and higher by desperate MM's trying to find shares for the contracts that were sold. At its current price of $15.02, SST has 21,202 April 14th call contracts in the money, amounting to 2,120,200 shares (or ~301% of the public float) which will need to be hedged for April 14th if the price can sustain the $15 mark. Should the price reach $17.5, that number goes up to 28,516 contracts or 2,751,600 shares, $20 - 2,938,300 shares, $22.5 - 2,989,300 shares, and $25 - 3,593,400 shares, or 511% of the publicly available float. The focus here is on the 4/14 expiry date because up until a few days ago we did not yet have weekly options so that is where most of the OI, volume and liquidity lies. ​ The Short Squeeze Now, hopefully you understand gamma, the powerful force that shot IRNT to new highs of a preposterous 400% in just a few days. But if you don't or are not convinced, don't worry, because lo and behold, tis’ but a slice of the pie. As of the latest official report on March 17th, which is updated bi-weekly by the NYSE/NASDAQ, SST has 2,816,545 shares short. That gives it approximately 400.5% short interest and makes it the most shorted stock in the entire market- by a very wide margin. As of today, Mar 29th the cost to borrow is a staggering 231.33%- one of the highest on the market. You may be wondering how a number so high could even be possible? Let me take you back to the GME days, and introduce or reintroduce to you what you might remember as the 'naked short.' Naked shorting is the action of forcibly short selling without actually finding a physical share to borrow and which now account for the vast majority of the recent short volume (see the most recent Fails to Deliver https://fintel.io/sftd/us/sst) ​ What Explains This?! So now you might be wondering, why? Why would hedge funds, retail or anyone for that matter, short a stock to oblivion like this should they not expect the price to go down drastically. The answer here is most likely twofold; the first being that, in the de-spac cycle, a company files an S-1 shortly after merger which deems certain shares subject to unlock, thereby adding dilution to the float, you can see the lock-up provisions for this ticker on the SEC website if you’d like. This file must be approved and made effective by the SEC, which typically has an execution time of 2 - 6 weeks. The problem for shorts here is, the SEC currently seems to be massively backlogged and there has not been a de-spac S-1 made effective in months. In the end nobody knows when the next one will occur, it could be imminent, on any given day, or in the case of MVST, another de-spac favorite, a long time, with an S-1 originally filed 6+ months ago with no effect. Now this in and of itself of course does not warrant a 400.5% short interest, the trade is far too crowded to be profitable, with all of the covering that must occur in the end. The over-leveraging here on the short side is most likely by the fault of the same MM's who have been selling options and are on the line for a lot of shares should the price increase due to hedging. They are likely trying their best to artificially drive the price down to avoid being on the hook for actually delivering the shares of your options contracts all the while pocketing that sweet juicy option premium you paid for. ​ The Company In And Of Itself Now before you jump the gun, you might be asking, what am I even investing in? Do I even care? Well I certainly don't recommend building a long term position in this company with the upcoming volatility that should take place but, this company and its underlying financials is not one to scoff at, nor do I recommend you short. If this is something you really want to take a look at I suggest you read this brilliant DD on the fundamentals and state of growth of the business here: https://www.reddit.com/r/wallstreetbets/comments/sjbtws/system1_sst_ready_to_pop/ ​ What I Expect to Happen Here: In reality, nobody knows what might happen here as the public float on SST is so small post-redemptions that it should not even technically be allowed to be trading with an options chain as per standard regulations, and we have never seen a setup quite like this before. The majority of the shorts in this trade entered in the low $10's range and it is rumored that they should be forcibly margin called if the price increases near the $20’s. On the other hand, call sellers may be forced to hedge as OPEX comes closer and closer, triggering a sudden price increase which will be a catalyst in itself. Whichever is triggered first, is anyone's guess but at the current rate, with the almost doubling of the short interest every bi-weekly report, MM's are trying their best to keep that price increase at bay, and it will need a strong push made by an outside force (IE retail) to make the break here. If and when this does occur though, I think it is safe to say that once the inevitable short and gamma squeeze unfold there is no way of turning back and the rest will be history. ​ DISCLAIMER: This is in no way financial advice and I am not a financial advisor, please always do your own due diligence before buying any security of any kind. This post was made strictly for entertainment purposes only. Disclosure: My position- I hold 50 4/14 $15 calls and plan to be trading the volatility as I have been. I will enter with a larger position once this gets the retail interest it needs to be valid as it is currently quite literally being held down by short sellers. I am in this ticker strictly for the technical setup at this time and do not plan to hold this for the long term. Special credit to u/repos39, u/sloppy_hoppy87, u/detectivedoot u/True_Masterpiece_254 for being the earliest pioneers of this play, I strongly suggest you read their own DD’s as well.

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$SST / System1 - The Stock That Will Make You Feel Like It's January 2021

bullish

Note: Please excuse the WSB-esqueness of this post as it was originally drafted for Wallstreetbets, but since they are not allowing SST posts and *STILL* nobody is talking about this ticker I wanted to at least put it out to some audience as this play gets more and more damning by the day all the while completely flying under everyone's nose. I think all of us here at r/spacs are aware of the mechanics and very high risks of redemption squeezes so please! Always remember to manage risk first and know what you are working with here.

Hello my fellow degenerates, it's me, your biggest degenerate, the one who got lucky being one of the first to buy AMC calls during the whole 2021 ape bonanza- before it was cool, making a cool few mil overnight with AMC calls. (Visit if feeling nostalgic: https://www.reddit.com/r/wallstreetbets/comments/ld1wio/i_probably_should_have_sold_if_i_was_a_pussy/) I have since been freely living the degenerate life in and out of the market all the while looking for and waiting, very patiently waiting for the next big thing.

Now, before I go any further, I know you probably think you've heard it all. Everything is a "squeeze" nowadays and you immediately tune out once the term even comes up as it has completely lost its meaning to anything short of pump and dump.

I urge you to drop what you've heard the past year, put every burnt out association with the label 'short squeeze' out of your mind for just one second, and hear me out.

I hereby present to you a ticker that goes by the name of $SST, or System1.

SST (previous ticker TREB) is a de-spac which means it merged with a special purpose acquisition company (Trebia Acquisition Corp) and had the majority of its public float (51,750,000) redeemed upon merger (99% to be exact). As per their 8-K on Feb 2, 2022: "51,046,892 shares of the 51,750,000 outstanding shares of Trebia Class A Common Stock were redeemed in connection with the Business Combination." https://sec.report/Document/0001193125-22-025942/

You may have heard of the 'de-spac squeeze' before (which occurs due to retail latching onto the shrinkage and lack of liquidity of the float, 'squeezing' it), or maybe even specifically, IRNT, another de-spac widely publicized on here in September, which then squeezed from $8 - $47.5.

SST has a public float of just 703,108 shares, one of the smallest de-spac floats EVER just after ISPO (256,408 - squeezed from $9 to $108), ANGH (243,000 - $8 to $33.13), EFTR (521,358 - $8 to $40.42), and AGIL (567,373 - $9 to $36.13).

None of the stocks mentioned above, minus IRNT had options.

Now, allow me to introduce the gamma component.

The Gamma Squeeze

IRNT, unlike the others mentioned above, had a post-redemption float much to the higher side, of 1,381,162. The reason IRNT was able to squeeze so high with a relatively large float (compared to its squeeze peers), is in major part due to the gamma factor.

The IRNT options chain had been loaded with thousands upon thousands of OTM calls, and as the price surged, MM's were forced to hedge for these calls, and due to the tiny float, this resulted in an insufficient amount of shares to be found for hedging, creating a snowball effect that 'squeezed' the price higher and higher by desperate MM's trying to find shares for the contracts that were sold.

At its current price of $15.02, SST has 21,202 April 14th call contracts in the money, amounting to 2,120,200 shares (or ~301% of the public float) which will need to be hedged for April 14th if the price can sustain the $15 mark. Should the price reach $17.5, that number goes up to 28,516 contracts or 2,751,600 shares, $20 - 2,938,300 shares, $22.5 - 2,989,300 shares, and $25 - 3,593,400 shares, or 511% of the publicly available float.

The focus here is on the 4/14 expiry date because up until a few days ago we did not yet have weekly options so that is where most of the OI, volume and liquidity lies.

The Short Squeeze

Now, hopefully you understand gamma, the powerful force that shot IRNT to new highs of a preposterous 400% in just a few days. But if you don't or are not convinced, don't worry, because lo and behold, tis' but a slice of the pie.

As of the latest official report on March 17th, which is updated bi-weekly by the NYSE/NASDAQ, SST has 2,816,545 shares short.

That gives it approximately 400.5% short interest and makes it the most shorted stock in the entire market- by a very wide margin. As of today, Mar 29th the cost to borrow is a staggering 231.33%- one of the highest on the market.

You may be wondering how a number so high could even be possible? Let me take you back to the GME days, and introduce or reintroduce to you what you might remember as the 'naked short.' Naked shorting is the action of forcibly short selling without actually finding a physical share to borrow and which now account for the vast majority of the recent short volume (see the most recent Fails to Deliver https://fintel.io/sftd/us/sst)

What Explains This?!

So now you might be wondering, why? Why would hedge funds, retail or anyone for that matter, short a stock to oblivion like this should they not expect the price to go down drastically. The answer here is most likely twofold; the first being that, in the de-spac cycle, a company files an S-1 shortly after merger which deems certain shares subject to unlock, thereby adding dilution to the float, you can see the lock-up provisions for this ticker on the SEC website if you'd like. This file must be approved and made effective by the SEC, which typically has an execution time of 2 - 6 weeks. The problem for shorts here is, the SEC currently seems to be massively backlogged and there has not been a de-spac S-1 made effective in months. In the end nobody knows when the next one will occur, it could be imminent, on any given day, or in the case of MVST, another de-spac favorite, a long time, with an S-1 originally filed 6+ months ago with no effect. Now this in and of itself of course does not warrant a 400.5% short interest, the trade is far too crowded to be profitable, with all of the covering that must occur in the end. The over-leveraging here on the short side is most likely by the fault of the same MM's who have been selling options and are on the line for a lot of shares should the price increase due to hedging. They are likely trying their best to artificially drive the price down to avoid being on the hook for actually delivering the shares of your options contracts all the while pocketing that sweet juicy option premium you paid for.

The Company In And Of Itself

Now before you jump the gun, you might be asking, what am I even investing in? Do I even care? Well I certainly don't recommend building a long term position in this company with the upcoming volatility that should take place but, this company and its underlying financials is not one to scoff at, nor do I recommend you short.

If this is something you really want to take a look at I suggest you read this brilliant DD on the fundamentals and state of growth of the business here: https://www.reddit.com/r/wallstreetbets/comments/sjbtws/system1_sst_ready_to_pop/

What I Expect to Happen Here:

In reality, nobody knows what might happen here as the public float on SST is so small post-redemptions that it should not even technically be allowed to be trading with an options chain as per standard regulations, and we have never seen a setup quite like this before. The majority of the shorts in this trade entered in the low $10's range and it is rumored that they should be forcibly margin called if the price increases near the $20's. On the other hand, call sellers may be forced to hedge as OPEX comes closer and closer, triggering a sudden price increase which will be a catalyst in itself. Whichever is triggered first, is anyone's guess but at the current rate, with the almost doubling of the short interest every bi-weekly report, MM's are trying their best to keep that price increase at bay, and it will need a strong push made by an outside force (IE retail) to make the break here. If and when this does occur though, I think it is safe to say that once the inevitable short and gamma squeeze unfold there is no way of turning back and the rest will be history.

DISCLAIMER: This is in no way financial advice and I am not a financial advisor, please always do your own due diligence before buying any security of any kind. This post was made strictly for entertainment purposes only.

Disclosure: My position- I hold 50 4/14 $15 calls and plan to be trading the volatility as I have been. I will enter with a larger position once this gets the retail interest it needs to be valid as it is currently quite literally being held down by short sellers. I am in this ticker strictly for the technical setup at this time and do not plan to hold this for the long term.

Special credit to u/repos39, u/sloppy_hoppy87, u/detectivedoot u/True_Masterpiece_254 for being the earliest pioneers of this play, I strongly suggest you read their own DD's as well.

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