2 Stocks With Short Squeeze Potential In April Meme Stock Maven

This is a big part of the reason Sirius XM Holdings has grown its top line every single quarter since the beginning of 2010, except for the second quarter of 2020. That, of course, is when the coronavirus was starting to spread, and most of those 2020 comps were also made unfairly tough due to 2019’s acquisition of Pandora. New pandemic-created habits prompt more buying of Weber equipment (when the supply chain isn’t broken).

If shorts are being covered before a squeeze develops, the situation can defuse itself without a sudden spike in demand. If the number of shorts is continuing to increase even as it would take five days or more to cover all of the short positions, that’s a good sign that a short squeeze may be looming. When trading a short squeeze, the goal is to get at the start of the bullish activity, before the majority of short sellers have been able to cover their positions and demand for the stock fades.

Anyways, GEO also seems way overpriced relative to its price-earnings-growth ratio of 46.7 times. Also, its price relative to tangible book value ranks well in the stratosphere brokerage company prtrend for the industry. Just for good measure, Gurufocus.com’s proprietary calculations for fair market value indicate that GEO pings as significantly overvalued.

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After all, a short seller could end up profiting from the woes of a company even while company stockholders’ and employees’ livelihoods are being destroyed. Short selling dowmarkets broker: is this a scam or not? refers to the sale of security such as a stock, in anticipation of prices falling. So far, though, Red Violet has only been harnessing red ink in the market this year.

• Stocks with high short interest can be risky, particularly in the current environment.
• However, we’re talking about early warning signals to get speculators positioned appropriately.
• Therefore, it’s best not to mess around with short trades unless you know that you know.
• With 15% of total shares held short, Warby Parker easily meets this threshold.
• Beware that short squeezes happen quickly, so you’ll need to closely monitor prospective stocks and ensure that you don’t chase a squeeze too long after it has started.
• For this reason, trading options is something that may not be right for every investor unless you have a high tolerance for risk.

Per Yahoo Finance, the bullish implication is that the U.S. government will seek to stockpile SIGA’s monkeypox treatment called TPOXX . By the way, it’s the only monkeypox treatment available; hence, the contrarian interest in SIGA stock. According to Benzinga, SIGA printed a bearish delta of 58.6% against the prior short interest reading. Currently, the company’s short interest is 16.7% while previously, it reached 4.2%. Here are 3 ways you can get fresh, actionable alerts every single day. Note that these rankings are updated throughout the day but lag the actual Short Squeeze Score displayed on company pages which are calculated on the fly.

Arch Resources, Inc. (NYSE:ARCH)

The short activity on ATER over the last month has seen a noteworthy bump, too. In February this year, 6.68 million shares were being shorted, but the latest data as of mid-March indicated 9 million shares being shorted- that’s an increase of roughly 33%. With its subsidiaries, the popular beauty brand Revlon Inc. develops and sells personal care products worldwide.

To get the timing right, you need to know that a short squeeze might be coming. A short squeeze occurs because short sellers get skittish when it looks like their short bets may prove wrong. Short sellers face unlimited risk if they turn out to be wrong and a stock’s price rises. Not only that, but short sellers will also start getting margin calls from their brokers as their short goes bad. Roughly speaking, by 2050, half of the world’s population could suffer from varying degrees of myopia. Longer term, then, Warby enjoys an extremely large total addressable market.

A large amount of short interest indicates that some investors believe a stock’s price will decline in the near future. “Short” shares can also serve as a hedge for investors that have purchased a large number of shares of a company thinking that the share price will rise over time. This page lists stocks that currently have the highest levels of short interest. But, sometimes there simply aren’t enough shares to go around for all the short sellers who want to buy back the stock. That drives up demand, which in turn creates a lot of buying pressure and a sudden jump in the price of a stock.

Optimism in the market can drive prices to lofty levels that are unsustainable and that don’t reflect the actual value of a company. The presence of short sellers in the marketplace can help to rebalance stock prices to ensure that companies are fairly valued. Short sellers borrow shares of stocks they don’t own and try to sell them at the current price with the aim of rebuying them once the price drops significantly.

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While LOOP could go either way, attacking a cash-rich enterprise may not be a great idea. Therefore, it’s the caboose for this list of short-squeeze stocks to buy. Nevertheless, CRCT popped up 3% on the Oct. 10 session, softly implying that it could be one of the short-squeeze stocks to buy. Moreover, shares gained over 12% during the trailing month, reflecting brewing contrarian interest. On the other hand, during the trailing month, the total crypto market cap increased roughly 33%. Therefore, contrarians reckon that SDIG may see explosive upside soon.

This means that it is possible to see a score on a company page that does not match a score here. In idiom those situations, the score displayed on the company page should be considered the most current.

The U.S. government has reduced spending in an effort to tame inflation, and the infrastructure bill is on hold. Slowing demand for real estate which will affect demand for steel production may affect Arch. An overall slowdown in demand can hurt revenue and, ultimately, profits. It’s likely why ARCH was the most-shorted energy company and second most-shorted company in mid-February, according to S&P Global Market Intelligence data, with short interest at 35.4%. Revlon was trending and was the most active stock last Friday, with more than 146 million shares traded.

Stocks With Short Squeeze Potential in March

Founded in 1932 in New York, NY, Revlon is among the oldest and well-known beauty brands globally, and there’s nothing pretty about its bearish trend. This stock has been trending down since the fourth quarter of 2019. Revlon’s debt, as showcased in the below chart, prompted its bankruptcy filing last week.

The GameStop gamma squeeze provides a great example of how much timing matters when attempting to take advantage of this kind of strategy. If you’re interested in options trading, then it helps to choose an online brokerage account that’s fee-friendly. Many online brokerages now offer $0 commission-fee options trading, with low per contract fees. Options trading in general is riskier than trading stocks, mutual funds or ETFs simply because there’s a certain amount of guessing that goes on about what will happen with a stock’s price. A gamma squeeze can happen when there’s widespread buying activity of short-dated call options for a particular stock. This can effectively create an upward spiral in which call buying triggers higher stock prices, which results in more call buying and even higher stock prices.

The company boasts an incredible 80 net promoter score, placing it in elite territory for having the happiest customers. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet and Alphabet .

While the data above isn’t entirely convincing, I think there’s enough there to warrant keeping an eye on some stocks. Below is a list of 25 stocks that are down at least 10% in 2022, with at least 10% of their float sold short. If this pattern continues with investors sinking more money into call potions, that can force institutional investors to buy more shares of the stock. This is a necessary step for hedging against the short position they now find themselves in. As mentioned, a squeeze can happen when stock prices unexpectedly come under pressure. Investors who own the stock may feel “squeezed” by rapidly changing prices and as a result, they change their positions in the stock.

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The bullish catalyst can come from news or from an earnings report, but it can also be foreshadowed by technical indicators. Momentum indicators like RSI, MACD, and stochastics can be extremely valuable in trying to predict whether and when a short squeeze will develop. If you’re looking for a short squeeze that is not just developing, but imminently occurring, you may want add filters for price change, such as percent change or current price relative to prior highs. A short squeeze is a very profitable setup if your entry and exits are timed correctly.

The company is on the cutting edge of biotech research, involved in distinct platforms like protein biomarkers. OFLX) is a manufacturer of corrugated flexible stainless steel tubing used for natural gas and propane installations in residential and commercial applications. However, on October 10, shares gained 1.3%, reflecting a possible candidate for buying short-squeeze stocks. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies.

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Presently, it features a short ratio of 14.2 and nearly 31 days to cover. Too many times, rookie traders focus simply on the short percentage of float. However, the best short-squeeze stocks to buy represent a multidimensional framework. That way, when panicked bears attempt to cover, they can neither run nor jump.

The Short Squeeze Screener and Leaderboard uses an advanced quantitative model to track companies that have the highest likelihood of experiencing a short squeeze. This is a short squeeze stocks list, or short interest tracker, that can be used as an integral part of your investing or trading research. This model is a proprietary, multi-factor model that uses a number of factors, including Short Interest % Float, Short Borrow Fee Rates, and others.

For example, if a stock has 100,000 shares short, but only an average of 20,000 shares traded per day, it would theoretically take short sellers five days to cover all of the short positions. Over a relatively short period of time, GME experienced a sharp spike as retail investors coordinated to drive up the stock’s price. At one point, the stock’s price had increased by more than 400%. At the same time, a number of large hedge funds held short positions in the company, owing to negative assumptions about its long-term financial outlook. The gamma squeeze happens when the underlying stock’s price begins to go up very quickly within a short period of time. As more money flows into call options from investors, that forces more buying activity which can lead to higher stock prices.