Having a high Squeeze Score does not guarantee that a stock will be squeezed – but it does highlight stocks that a have a much higher squeeze potential than most other stocks in the market. And finally, all these stocks have incurred double digit percentage mark-to-market losses over the last 30 days coupled with mark-to-market losses over the last seven days. Stock borrows are tight in most of these stocks with only six trading at General Collateral levels and twelve are trading at above 10% fee levels. The stocks in our top 25 list all have elevated S3 SI % Float and days-to-cover. But they will usually continue to “ride the wave” until the wave dissipates, or they are forced out by market conditions such as stock recalls or unpalatable stock borrow fees. They may exit or trim their positions if trading or stock loan liquidity diminishes significantly or if their expected Alpha is reached and there are more attractive trades elsewhere. No trader will be forced to exit a position that continues to be profitable. A short position, no matter how crowded, that continues to be profitable cannot be squeezed. An additional variable which is necessary for a short squeeze to occur is substantial net-of-financing mark-to-market losses. While a stock can be “crowded” it might not necessarily be a short squeeze candidate. Short Interest as a true percentage of a company’s tradable float (which includes synthetic longs created by short selling). Our Crowded Score takes a multi-factor approach to identify short-side crowded securities and take into consideration:
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