For general shorting information—such as the short interest ratio, the number of a company's shares that have been sold short divided by the average daily volume—you can usually go to any website that features a stock quotes service, such as the Yahoo Finance website in Key Statistics under Share Statistics.
A short squeeze occurs when a stock or other asset jumps sharply higher, forcing traders who had bet that its price would fall, to buy it in order to forestall even greater losses. Their scramble to buy only adds to the upward pressure on the stock's price.
Scanning for a Short Squeeze
Understanding Short Squeezes
If a short seller thinks a stock is overvalued and shares are likely to drop in price, they can borrow the stock through a margin account. The short seller will then sell the stock and hold onto the proceeds in the margin account as collateral.
3 of the Most Heavily Shorted Stocks Right Now
Most Shorted Stocks
| Symbol Symbol | Company Name | Float Shorted (%) |
|---|---|---|
| FLGT FLGT | Fulgent Genetics Inc. | 32.07% |
| FUV FUV | Arcimoto Inc. | 31.32% |
| TRIT TRIT | Triterras Inc. Cl A | 31.21% |
| CLVS CLVS | Clovis Oncology Inc. | 31.06% |
When shorts exit
If you are a stock trader and are short, being in a short squeeze may be very uncomfortable. ... In the same way, if you are an options trader and are buying puts, a short squeeze is bad for you. But if you are an options trader and are buying calls, a short squeeze is usually good for you.
As the Securities and Exchange Commission states, however, “a scheme to manipulate the price or availability of stock in order to cause a short squeeze is illegal.” Speaking about the GME short squeeze, Dr Elvis Jarnecic, senior lecturer at the University of Sydney Business School, claims that, “if institutions did ...
If a stock has a high short interest, short positions may be forced to liquidate and cover their position by purchasing the stock. If a short squeeze occurs and enough short sellers buy back the stock, the price could go even higher.
Short squeezes are typically triggered either by unexpected good news that drives a security's price sharply higher or simply by a gradual build-up of buying pressure that begins to outweigh the selling pressure in the market.
It's not simply the options that cause this type of squeeze; it's the cycle. And when it ends, there's usually nothing but air below the stock, which results in a fall that happens faster than the rise.
In the stock screener, on the 'indicators' tab, you can find a filter list which is named 'squeeze play'. This is where all squeeze play related conditions can be found.
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