Jul. 24 at 9:50 PM
$RKT for those unaware, the high short interest is driven be a merger arbitrage trade which puts RKT fair value at
$14.22 today based on
$COOP closing price of
$156.38.
Institutions are betting the acquisition goes through and they pocket free money. However, short sellers face significant risks, including a potential short squeeze fueled by retail enthusiasm, breakdown of arbitrage parity, deal failure, dilution effects, macroeconomic pressures, and rising borrow fees.
