u/Financial_Desk4268

The setup on $SOUN is looking like a powder keg heading into next week. Here is the breakdown of why the bears are about to get cooked:

The Data

• Short Interest: ~146M shares (38.2% of float).

• The Trap: Most shorts are underwater, concentrated between $7.50 – $8.50.

• Cost to Borrow (CTB): Averaging 64.2% with spikes over 110%. The daily interest is eating them alive.

• Liquidity: Near-zero shares available to borrow at major brokers. It’s a 7.5-day cover period.

The Catalysts

The reported bid for eBay is shifting sentiment to "risk-on" for high-short baskets. $SOUN is a top-momentum scanner right now. If we see volume on Monday, Market Makers will be forced to delta-hedge, adding fuel to the fire.

Levels to Watch

• $10.00: Major psychological wall.

• $10.60: The 200-Day Moving Average. This is the ignition point. If we clear this, institutional stop-losses will trigger automatically.

• The Gap: There is almost zero volume resistance between $12 and $20. Breaking $11.00 makes this a vacuum to the upside.

The goal is to break that 200-MA ($10.60) on Monday/Tuesday to set up a "Gamma Trap" going into Earnings this Thursday.

Positions:

• $SOUN $10c 5/22

• $SOUN $12.5c 6/19

• 500 shares @ $8.40 avg