The Next GameStop? 25 Stocks With High Short Interest

This makes them far riskier investment ventures than, say, traditional automakers. Aterian has sported a utilization rate of 100% since the beginning of March. Utilization is the number of loaned shares divided by the available shares in the securities lending market. When this rate approaches or reaches saturation, it means that short sellers need to be more resourceful in finding shares to short – and that could be an eventual catalyst for a short squeeze.

Moomoo Financial Inc. is a member of Securities Investor Protection Corporation , which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). SIPC does not protect against market risk, which is the risk inherent in a fluctuating market. For further information about SIPC insurance coverage for accounts with Moomoo Financial Inc., see or request an explanatory brochure from Moomoo Financial Inc. Gamma and delta, along with the other Greeks, can be used together to determine what may happen with a stock’s price over time. This can then be used to determine what position to take when trading options for a specific stock.

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Sign Up NowGet this delivered to your inbox, and more info about our products and services. Here’s how you can scan for the best undervalued stocks every day with Scanz. Check out this step-by-step guide to learn how to scan for the best momentum stocks every day with Scanz. The selling wasn’t confined to the equities market, with crude oil, gold and Bitcoin all suffering steep losses.

Is Tesla a short squeeze?

Tesla, may be the most shorted stock in the world, but investors betting against the electric vehicle (EV) manufacturer lost $1 billion last week and could be facing a 'short squeeze hell’, according to a report by Business Insider.

Newegg recently gained meme-stock status amid share gains that extended to 627% over a one-week period. They include Exela Technologies and Newegg, both of which have recently been labeled meme stocks. I/we have a beneficial long position in the shares of ARCH, CUTR, EVGO, SPWR, AMZN either through stock ownership, options, or other derivatives. usd to aud exchange rates and currency convertor We like Arch Resources as a U.S.-based producer and exporter which has done everything right to continue sustainably meeting the real market need while benefiting from record prices this year. Shares have pulled back nearly 30% from a recent high while we believe the current level offers a compelling entry point near support.

It looks like sellers overshot their targets, so a correction of their mistakes might be in the cards.

Fintel shows 30% of the company’s float short and a cost to borrow of 32%. Fintel shows institutional fund flows in the stock negative with owners declining and allocations declining as well. The consumer products and digital marketing company merged with TikTok rival Lomotif.

What happens if a shorted stock goes to zero?

For instance, say you sell 100 shares of stock short at a price of $10 per share. Your proceeds from the sale will be $1,000. If the stock goes to zero, you'll get to keep the full $1,000. However, if the stock soars to $100 per share, you'll have to spend $10,000 to buy the 100 shares back.

Here, we’ll review two stocks that – being heavily bet against by short sellers – may experience a short squeeze in April. Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved. Short squeezes typically result in large price movements, so you can couple your short squeeze scan with an intraday price rise greater than 5% or more.

Haverty Furniture Company Is A High-Yield And deep Value

Gamma squeezes can occur as the result of widespread speculation about where a stock’s price may be headed. For example, if a company is struggling financially then institutional investors may decide to short the stock in the belief that the price will fall. That isn’t out of the ordinary but what is unusual is when a group of investors or a single large institutional investor starts buying up stock, beginner’s guide of forex technical analysis resulting in a short squeeze. For example, January 2021 saw an increase in short squeeze activity surrounding several companies, including GameStop Corp. and AMC Entertainment Holdings . With a short squeeze, an increase in stock prices can force people who shorted the stock to buy back their shares. Shorting means investors are betting that the price of a stock will go down, rather than increase.

  • Last year’s meme stock trading frenzy might have come to an abrupt end in 2022, but the market remains rife with high-short-interest stocks that could be ripe for a short squeeze.
  • At that point it was assumed that the Global Financial Crisis , playing out at the time, would flow into a collapse in demand for automobiles.
  • While the loss is significant, it is important to note that Electrameccanica is a young company that is still in the investment phase.
  • While there, he managed mandates and proprietary capital on behalf of multiple domestic and international banks, family offices, fund of funds, and pension fund clients.
  • Covering some risks, we can bring up the ongoing Russia-Ukraine crisis.
  • The result is something of a shakeup in the list of stocks with highest short interest, as measured by the percentage of shares outstanding sold short.

One of the better known and early short squeezes involved the speculator Daniel Drew, who was active on Wall Street from 1840 to 1875, and Cornelius Vanderbilt, a stalwart of Wall Street and early investor in railroads . Drew shorted stock in the New York and Harlem Railroad Company in 1864, hoping to gain from a price fall, however he faced off against motivated, well-funded buyers, who were able to force the price up significantly. The company ranks fifth on the leaderboard for the week with 36% of the float short and a borrow fee of 18%.

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There are no guarantees that working with an adviser will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest. Once a gamma squeeze reaches its peak, price reversals can happen very quickly and you may see a steep decline in stock prices. For this reason, trading options is something that may not be right for every investor unless you have a high tolerance for risk. The Volkswagen short squeeze resulted in considerable controversy, with legal action by impacted short sellers against Porsche ongoing at the time of writing, nearly 14 years after the event. The controversy narrowly centered around whether Porsche’s actions constituted market manipulation.

5 stocks ripe for short squeeze

Find out how environmental, social and governance considerations are embedded within our organization and investment principles. We provide access to some of the industry’s most talented and innovative thinkers. On the publication date, Faizan Farooque did not have any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines.

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Customers should consider the appropriateness of the information having regard to their personal circumstances before making any investment decisions. Moomoo is a financial information and trading app offered by Moomoo Techonologies Inc. Sierra Wireless , for one, disappointed Wall Street with an earnings announcement in January. “Shocking,” moaned Mike Walkley, an analyst who follows wireless communications equipment for Piper Jaffray.

5 stocks ripe for short squeeze

That last little detail appears to have caused big trouble, rewarding anyone who shorted the stock between then and now. Shares are currently trading at yet another record low, down more than 40% from their initial public offering price and more than 60% below their post-IPO surge. Those savvy speculators seem to have figured out that the timing and pricing of the public offering were both more than a little off. Founded in 1993 by brothers Tom which trading session to choose and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The company remains highly profitable with significant cash flow that will make it hard for the bears to keep dragging it lower. The stock has a reported short interest of 21% making it susceptible to a squeeze into another leg higher in coal and steel prices.

He began his career with Infinity Constructions, working in the project management and quantity surveying departments. These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them. While the loss is significant, it is important to note that Electrameccanica is a young company that is still in the investment phase. The company is encouraged by strong top-line growth and remains committed to its long-term goal of becoming a profitable and sustainable business.

  • Mathew started at H3 Global Advisors in 1996 and was instrumental in establishing the firm.
  • The Pro Scanner allows you to easily search for short squeeze setups, which you can then monitor for bullish signals that will spark widespread buying activity.
  • Our risk management models were signaling for a reduction in risk and position sizing in nickel going into the short squeeze, due to the significant volatility in markets.
  • Sierra Wireless , for one, disappointed Wall Street with an earnings announcement in January.

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