A volatile market and heavy hitters in the meme stock category have made June a thrill ride for retail investors, whales, hedge funds, and all the other major players in what is lining up to be one of the most exciting, and sketchy, months in market history.
Let’s get this out of the way first: this is not financial advice, I am not a financial advisor. Whatever I say here is not investment advice, nor am I suggesting that you purchase any particular stock or hold any particular position.
What is a short squeeze?
According to Investopedia, a short squeeze is an “unusual condition that triggers rapidly rising prices in a stock…[where an] unusual degree of short-sellers hold positions”. A particular number, outcome or whether they ever make it to the moon from the stratosphere is a bit more difficult to predict. There is a great deal of technical analysis that can be done to try and see a path forward for any given tradeable security, but there are just as many variables as there are difficulties in predicting where lightning will strike.
A short squeeze challenges conventional growth in the stock, and the trading patterns can create a graph that is a bit more difficult to decipher but is nonetheless possessed of at least some pattern. Observing market behavior in shorted stocks, following their media presence, and observing for online attention from social media, YouTube, Reddit, and other outlets can help frame the viability of a short squeeze, especially if a large group of determined retail investors makes a concerted effort to move the meter one way or another.
Assessing a stock for the triggering of a squeeze, or series of squeezes, is part mathematical expertise, part gamble, and a large serving of faith. AMC is the hottest example of the meme stocks of January 2021 that is now experiencing some exciting movement in the market thanks to determined Apes and retail investors who have committed to their vision for the security. To be completely transparent, I am a proud hodler of AMC and wish the company the best as they recover from pandemic shortfalls.
The Top 10 Shorts
I won’t drag this out, you came here for a listicle, so let’s explore the Top 10 heavily shorted stocks as of June 8th, 2021. These can change quickly, violently, and abruptly. If you choose to invest or stand behind any stock, remember your money. Never spend more than you can vouch for and measure risk over reward.
High Short Interest provides this list and you can utilize their database for reference and sorting as well if you choose to explore further.
Workhorse (WKHS) Shorted 41.93%
Clover Health Investments (CLOV) 36.10%
Blink Charging Co (BLNK) 35.88%
The GEO Group Inc (GEO) 34.53%
Arcimoto Inc (FUV) 32.07%
Bed Bath & Beyond (BBBY) 32.07%
Root Inc (ROOT) 31.79%
Clovis Oncoloy (CLVS) 30.85
Ontrak, Inc (OTRK) 30.30%
Gogo Inc (GOGO) 30.01%
Any decision you make with money should be a well-researched decision and not made with haste but with goals in mind. Remember to do the work to earn the tendies. Shine on, crazy diamonds!