Thinking Ahead: How To Time The Short Squeeze Should I Decide To Sell
One of things that I have been thinking about lately as it relates to EBIX is how to play what I suspect will be a probable epic short squeeze. If things play out like I expect them to, the short squeeze is going to cause a massive multi-day spike in the stock which based on the enormous short position and limited float will likely cause EBIX's share price to rise to the point where it will get ahead of itself and eventually come back down from a very high spike once the squeeze starts to loose its momentum and some profits are taken. I know that it is impossible to time the top in such a situation, but I may decide to do my best and sell out my position in EBIX hopefully near the top of the short squeeze and then wait for the stock to correct back down from its peak and reacquire the stock.
In this regard, I was wondering what strategies people would suggest to try to effectuate maximizing the selling price during the short squeeze and what factors and metrics I should be watching to try to make the best guess as to when the squeeze has reached its near climax in terms of EBIX share price.
Since it is impossible, I will take a stab at it,,,,,it will go up about a foot or so, when it drops about an inch,,,,sell. That is how it was explained to me. Substitute money for linear measurements.
I realize that it is impossible to be precise, but I also do not think the timing of this has to be just a wild guess. For example, I would think that the amount of shares short at the time when the squeeze starts measured by the daily trading volume thereafter would provide some indication of how much juice is left in the short squeeze. Perhaps, others can put a finer point on this and provide other variables also to factor into making the best guess on how to maximize the squeeze once it starts.