Tag: BIG

Top NYSE Short Squeeze Stocks

by Fred Fuld III

Many stocks have dropped during the last few weeks.

This may create a buying opportunity for New York Stock Exchange stocks that are heavily shorted.

Do short squeeze stocks actually go up?

On August 22, 2022, I posted an article about meme related short squeeze stocks, and pointed out Bed Bath and Beyond (BBBY) after it had its big run-up. In exactly one week after the article was posted, the stock jumped by more than 43%.

Another stock that was mentioned was Intercept Pharmaceuticals, Inc. (ICPT), which increased by almost 5% in just two days.

The stock with the biggest short ratio (days to cover) last August, at 14.3 back then, was Heron Therapeutics, Inc. (HRTX). It rose by 9.5% in three days.

When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.

Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.

Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:

Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.

Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.

Short Percentage Increase ~ This is the percentage increase in in the number of short sellers from the previous month.

The following are some heavily shorted stocks that may be worth considering.

CompanySymbolShort % of floatShort % changeShort Interest Ratio
Carvana CoCVNA58.05%1%2.8
Silvergate Capital CorpSI45.08%-12%0.8
Big Lots, Inc.BIG39.78%11%7.3
Fisker IncFSR37.34%7%8.7
Wayfair IncW30.02%-5%4.3

The third stock on the list, Big Lots (BIG) has almost 40% of its float shorted, an increase of 11% over last month.

The short interest ratio is 7, which means that it would take the short sellers 7 days to cover their position, based on recent average volume.

Just keep in mind that just because a stock has good ratios and is heavily shorted, doesn’t mean that the stock will go up, especially in a bear market. Also, stocks that are significantly shorted may be shorted for a reason.

Disclosure: Author didn’t own any of the above at the time the article was written.

NYSE Stocks with the Highest Short Interest

by Fred Fuld III

A short squeeze is a phenomenon that occurs in financial markets when investors who have sold shares of a stock short (i.e., betting that the stock price will fall) are forced to buy those shares back at a higher price than they expected. This can happen when the stock’s price rises sharply, causing losses for short sellers who need to buy the stock to cover their position and limit their losses.

As more and more short sellers try to buy the stock to close out their positions, this increased buying activity can drive the stock price even higher, creating a feedback loop that can lead to a rapid and dramatic increase in price. This can create a challenging situation for short sellers, who may be forced to buy back the stock at a loss, or risk even greater losses if the stock continues to rise. A short squeeze can also create opportunities for long investors who have purchased the stock, as they may be able to sell their shares at a higher price to short sellers looking to cover their positions.

On August 22, 2022, I posted an article about meme related short squeeze stocks, and pointed out Bed Bath and Beyond (BBBY) after it had its big run-up. In exactly one week after the article was posted, the stock jumped by more than 43%.

Another stock that was mentioned was Intercept Pharmaceuticals, Inc. (ICPT), which increased by almost 5% in just two days.

The stock with the biggest short ratio (days to cover), at 14.3 back then, was Heron Therapeutics, Inc. (HRTX). It rose by 9.5% in three days.

When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.

Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.

Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:

Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.

Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.

Short Percentage Increase ~ This is the percentage increase in in the number of short sellers from the previous month.

The following are some heavily shorted tech stock that may be worth considering.

CompanyTickerShort % of FloatShort % ChangeShort Interest Ratio
Silvergate Capital CorpSI76.92%-6%1.2
Carvana CoCVNA52.82%0%1.8
Wayfair IncW33.65%0%4.2
Big Lots, Inc.BIG32.44%-1%7
C3.ai IncAI27.31%5%1.4
Fubotv IncFUBO26.57%-27%3.2
Virgin Galactic HoldingsSPCE25.92%9%5.9
Bakkt Holdings IncBKKT24.53%6%4.3
AMC EntertainmentAMC24.39%1%3.7
Cinemark Holdings, Inc.CNK23.73%0%7.6

The third stock on the list, Wayfair (W) has over 33% of its float shorted, with no change in short interest over last month.

The short interest ratio is 4.2, which means that it would take the short sellers over 4 days to cover their position, based on recent average volume.

Just keep in mind that just because a stock has good earnings ratios and is heavily shorted, doesn’t mean that the stock will go up, especially in a bear market. Also, stocks that are significantly shorted may be shorted for a reason.

Disclosure: Author didn’t own any of the above at the time the article was written.

Top 10 Short Squeeze Plays: Will One of Them Become a Meme Stock?

by Fred Fuld III

There is a way that traders and investors can make money on the long side from short squeezes. One strategy that stock traders use is buying short squeeze stocks, companies have been heavily shorted. Here is a more extensive explanation of short squeeze stocks.

When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.

Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.

Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:

Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.

Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.

Short Percentage Increase ~ This is the percentage increase in in the number of short sellers from the previous month.

So what stocks are heavily shorted that may be worth a closer examination? Check out the following list, but be aware, that have reasons for shorting these stocks.

CompanySymbolExchangeShort InterestShort % ChangeShort RatioFloat
Bed Bath & Beyond Inc.BBBYNasdaq47.22%2%2.361.56M
Intercept Pharmaceuticals IncICPTNasdaq45.12%4%12.623.63M
Heron Therapeutics IncHRTXNasdaq39.56%1%14.3102.22M
SpringWorks Therapeutics IncSWTXNasdaq38.77%3%9.431.64M
Big Lots, Inc.BIGNYSE37.66%1%6.626.49M
MicroStrategy IncMSTRNasdaq36.51%-7%3.29.32M
Upstart Holdings IncUPSTNasdaq35.73%0%2.472.32M
Big 5 Sporting Goods CorpBGFVNasdaq35.28%2%10.220.85M
Beyond Meat IncBYNDNasdaq35.12%-7%5.556.79M
Evgo IncEVGONasdaq34.98%-2%8.367.74M
Fubotv IncFUBONYSE32.96%10%4.2166.36M

Let’s take a look at two of these stocks and compare them.

Bed Bath & Beyond (BBBY) has been in the news extensively over the last couple weeks, going from 9 to 30 and back down to 9 again. You will notice that it is at the top of the short list. However, notice the Short Ratio, which is also the Days to Cover Ratio, of only 2.3.

This means that it would take the short sellers only a couple days to cover their position, based on current average volume. Plus there has only been a 2% increase in the short positions versus last month.

Now look at number two on the list, Intercept Pharmaceuticals (ICPT), which has a very high short ratio of 12.6, meaning that it would take almost thirteen days for the short sellers to cover. In addition, the percentage increase in short positions went up by 4%.

Just keep in mind that just because a stock has good earnings ratios and is heavily shorted, doesn’t mean that the stock won’t continue to drop, especially in a bear market. Also, stocks that are significantly shorted may be shorted for a reason.

Disclosure: Author didn’t own any of the above at the time the article was written.

Looking for Short Squeeze Plays?

by Fred Fuld III

In case you haven’t noticed, the stock market has tanked recently, with most stocks dropping by a substantial amount. Some traders think we are due for a bounce, even if we are in a bear market (which I think we are).

If we are do for a bounce, what do you do?

Traders and investors can make money on the long side from short squeezes. One technique that stock traders utilize is buying short squeeze stocks, companies have been heavily shorted. Here is a more extensive explanation of  short squeezes.

When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.

Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.

Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:

Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.

Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.

Short Percentage Increase ~ This is the percentage increase in in the number of short sellers from the previous month.

So what stocks are heavily shorted that may be worth a closer examination? Check out the following list, but be aware, that often some stocks are heavily shorted for a reason.

All these stocks have more than 30% of their float shorted, have days-to-cover greater than 6, and all are generating earnings with trailing and/or forward price to earnings ratios less than 15.

Company Symbol Short % of Float Days to Cover
Big 5 BGFV 38% 9
Big Lots BIG 34% 5.8
Conn’s CONN 42% 8.5
Camping World CWH 35% 9.1
Groupon GRPN 33% 6.2

Just keep in mind that just because a stock has good earnings ratios and are heavily shorted, doesn’t mean that the stock won’t continue to drop, especially in a bear market. Also, stocks that are significantly shorted may be shorted for a reason.

Disclosure: Author didn’t own any of the above at the time the article was written.

Top Short Squeeze Stocks Might Be Worth Buying

by Fred Fuld III

The cannabis company Tilray (TLRY) jumped from 22.93 a share to around 300 a share from the beginning of August to late September. This is in spite of the fact that the company hasn’t generated any earnings. Many believe that the reason for the price rise in the stock is due to a short squeeze. When the stock rises fast for any reason, short sellers scramble to cover their positions by buying the stock, and thereby driving up the price of the stock even more.

So how can you make money on the long side from short squeezes? One technique that stock traders utilize is buying short squeeze stocks, companies have been heavily shorted. Here is a more extensive explanation of what a short squeeze is.

When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.

Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.

Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:

Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.

Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.

Short Percentage Increase ~ This is the percentage increase in in the number of short sellers from the previous month.

Here is one example. Big Lots (BIG) is a stock that is heavily shorted. As a matter fo fact, 25.2% of the float is shorted. In addition, the number of shares shorted has increased by 1% over the last reported two week period. Finally, the short interest ratio is 11.5. That means it would take the short sellers over eleven days to cover their positions, based on the number of shares that trade each day on average.

So what stocks are heavily shorted that may be worth a closer examination? Check out the following list, but be aware, that often some stocks are heavily shorted for a reason. All these stocks have price for earnings ratios and forward P/E ratios of less than 15, and a price sales ratio of less than one.

Hopefully, some of these stocks will squeeze some juice out of your portfolio.

Company Symbol % change % of Float Days to cover
Bed Bath & Beyond BBBY -5% 21.6% 2.5
Big Lots BIG 1% 25.2% 11.5
Cooper Tire & Rubber CTB 4% 20.1% 20.2
Camping World Holdings CWH -1% 48.9% 6.1
Dillards DDS 2% 43.3% 21.7
Dicks Sporting Goods DKS -4% 20.7% 6.1

Top Short Squeeze Stocks

by Fred Fuld III

During the last month, the stock price of Tesla (TSLA) has increased by 23.9%. This is in spite of the fact that the company hasn’t generated any earnings. Many believe that the reason for the price rise in the stock is due to a short squeeze, as over 39 million shares have been shorted, amounting to 31% of the stock float. When the stock rises for any reason, short sellers scramble to cover their positions by buying the stock, and thereby driving up the price of the stock even more.

So how can you make money on the long side from short squeezes? One technique that stock traders utilize is buying short squeeze stocks, companies have been heavily shorted. Here is a more extensive explanation of what a short squeeze is.

When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.

Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.

Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:

Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high, and potential short squeeze plays.

Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.

Short Percentage Increase ~ This is the percentage increase in in the number of short sellers from the previous month.

Here is one example. Big Lots (BIG) is a stock that is heavily shorted. As a matter fo fact, 30.6% of the float is shorted. In addition, the number of shares shorted has increased by 6% over the last reported two week period. Finally, the short interest ratio is 9. That means it would take the short sellers nine days to cover their positions, based on the number of shares that trade each day on average.

So what stocks are heavily shorted that may be worth a closer examination? Check out the following list, but be aware, that often some stocks are heavily shorted for a reason.

Company Symbol % change % of Float Days to cover
Big Lots BIG 6 30.6 9.0
Ichor ICHR 0 33.2 6.7
Mallinckrodt MNK 0 39.4 13.6
Renewable Energy REGI 12 27.4 7.4
Abercrombie & Fitch ANF 2 22.0 5.8

Maybe this is a way to squeeze some juice out of your portfolio.

 

Disclosure: Author owns TSLA.

Corporate Stock Earnings Reports for Week 1 of December

Looking for some interesting moves in some stocks this upcoming week? Check out the companies that will be reporting earnings.

If earnings exceed analysts’ expectations, the stocks can shoot up. If the numbers underperform, the stock can tank. Then again, occasionally, stocks don’t move the way you would have expected.

Anyway, many traders use earnings plays for trading strategies. Also, option traders look for high implied volatility of stocks for for option selling strategies.

Here are many of the enormous number of stocks reporting earnings this week:

Monday

  • VNET
  • SFUN
  • SCVL
 
Tuesday
 
  • ADSK
  • BNS
  • FSC
  • MNK
  • SPLK
  • TIF
Wednesday
  • AEO
  • BOX
  • GES
  • LZB
Thursday
 
  • AMBA
  • DG
  • KR
  • LE
  • SWHC
  • TD
 
Friday
 
  • BIG
  • FRED
If you like interesting stock lists like this, be sure to check out many of the free stock lists here at WallStreetNewsNetwork.com.