Anyone who researched what a Short Position is vs. a Long position will know that Short Position traders are under contract to buy in order to exit their trade. This "Buy" is ideally done at a lower price than where the short was taken out which is how shorts pocket profits from the trade.
If you look over the historical price chart for HEXO Corp you will notice that the prices have all been excessively higher than where we are now therefore
all of the short positions taken out at those higher prices are currently "In the Money". Some of these Short Positions can make notable profits at today's price or even at recent highs of the last few weeks. The difference between covering at a recent Low or a Recent High is virtually nothing to these traders however they require folks to post shares for sale in order for them to take the profit.
If current HEXO shareholders are motivated to not sell (or post at much higher prices), then the shorts are still required to buy (cover the order) however their profits could be less (depending on how high their short was taken out). Motivation not to sell is typically provided by News from the Company or from MainStream Media. Anyone paying attention should know now that the SAFE Banking Act is slated for May 18th for potential vote, if the Bill Passes this time then interest in the Sector and better prices are very realistic in the days/weeks/months to follow.
There are currently over 1 Million Shares under Contract to be bought off the open market for HEXO Corp in order to address the Short Position on the Stock. If I were to post anything for sale it would not be all my shares and it certainly would not be under my own weighted average cost per share.
Enjoy your weekend
Q
- Long on HEXO