There is a way that traders and investors can make money on the long side from short squeezes. One strategy that stock traders use is buying short squeeze stocks, companies have been heavily shorted. Here is a more extensive explanation of short squeeze stocks.
When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.
Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.
Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:
Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.
Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.
Short Percentage Increase ~ This is the percentage increase in in the number of short sellers from the previous month.
So what stocks are heavily shorted that may be worth a closer examination? Check out the following list, but be aware, that have reasons for shorting these stocks.
Company
Symbol
Exchange
Short Interest
Short % Change
Short Ratio
Float
Bed Bath & Beyond Inc.
BBBY
Nasdaq
47.22%
2%
2.3
61.56M
Intercept Pharmaceuticals Inc
ICPT
Nasdaq
45.12%
4%
12.6
23.63M
Heron Therapeutics Inc
HRTX
Nasdaq
39.56%
1%
14.3
102.22M
SpringWorks Therapeutics Inc
SWTX
Nasdaq
38.77%
3%
9.4
31.64M
Big Lots, Inc.
BIG
NYSE
37.66%
1%
6.6
26.49M
MicroStrategy Inc
MSTR
Nasdaq
36.51%
-7%
3.2
9.32M
Upstart Holdings Inc
UPST
Nasdaq
35.73%
0%
2.4
72.32M
Big 5 Sporting Goods Corp
BGFV
Nasdaq
35.28%
2%
10.2
20.85M
Beyond Meat Inc
BYND
Nasdaq
35.12%
-7%
5.5
56.79M
Evgo Inc
EVGO
Nasdaq
34.98%
-2%
8.3
67.74M
Fubotv Inc
FUBO
NYSE
32.96%
10%
4.2
166.36M
Let’s take a look at two of these stocks and compare them.
Bed Bath & Beyond (BBBY) has been in the news extensively over the last couple weeks, going from 9 to 30 and back down to 9 again. You will notice that it is at the top of the short list. However, notice the Short Ratio, which is also the Days to Cover Ratio, of only 2.3.
This means that it would take the short sellers only a couple days to cover their position, based on current average volume. Plus there has only been a 2% increase in the short positions versus last month.
Now look at number two on the list, Intercept Pharmaceuticals (ICPT), which has a very high short ratio of 12.6, meaning that it would take almost thirteen days for the short sellers to cover. In addition, the percentage increase in short positions went up by 4%.
Just keep in mind that just because a stock has good earnings ratios and is heavily shorted, doesn’t mean that the stock won’t continue to drop, especially in a bear market. Also, stocks that are significantly shorted may be shorted for a reason.
Disclosure: Author didn’t own any of the above at the time the article was written.
The following is a short list of some of the many stocks going ex dividend during the next month.
Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.
This technique generally works in bull markets and flat or choppy markets, but you need to avoid the strategy during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.
The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and many with yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and annual yield.
Cedar Fair, L.P. (FUN)
6/3/2019
0.925
7.16%
Schlumberger N.V. (SLB)
6/4/2019
0.50
5.48%
QUALCOMM Incorporated (QCOM)
6/5/2019
0.62
3.79%
Abercrombie & Fitch Company (ANF)
6/6/2019
0.20
3.20%
Kimberly-Clark Corporation (KMB)
6/6/2019
1.03
3.20%
Hewlett Packard Enterprise Company (HPE)
6/11/2019
0.112
3.18%
HP Inc. (HPQ)
6/11/2019
0.16
3.26%
Bed Bath & Beyond Inc. (BBBY)
6/13/2019
0.17
5.04%
Coca-Cola Company (The) (KO)
6/13/2019
0.40
3.26%
Las Vegas Sands Corp. (LVS)
6/18/2019
0.77
5.42%
Yamana Gold Inc. (AUY)
6/27/2019
0.005
1.09%
Ralph Lauren Corporation (RL)
6/27/2019
0.688
2.55%
Xerox Corporation (XRX)
6/27/2019
0.25
3.11%
The additional ex-dividend stocks can be found HERE . (If you have been to the page before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists HERE . Most of the lists are free.
Dividend definitions:
Declaration date: the day that the company declares that there is going to be an upcoming dividend.
Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.
Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.
Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.
Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.
Disclosure: Author did not own any of the above at the time the article was written.
The following is a short list of some of the many stocks going ex dividend during the next month.
Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.
This technique generally works in bull markets and flat or choppy markets, but you need to avoid the strategy during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.
The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and many with yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and annual yield.
Rocky Mountain Chocolate Factory, Inc. (RMCF)
3/4/2019
0.12
5.55%
Southwest Airlines Company (LUV)
3/5/2019
0.16
1.10%
QUALCOMM Incorporated (QCOM)
3/6/2019
0.62
4.81%
Kimberly-Clark Corporation (KMB)
3/7/2019
1.03
3.53%
Dunkin’ Brands Group, Inc. (DNKN)
3/8/2019
0.38
2.15%
Bed Bath & Beyond Inc. (BBBY)
3/14/2019
0.16
3.94%
Nasdaq, Inc. (NDAQ)
3/14/2019
0.44
2.02%
Las Vegas Sands Corp. (LVS)
3/19/2019
0.77
5.19%
Portland General Electric Company (POR)
3/22/2019
0.363
2.97%
Franklin Resources, Inc. (BEN)
3/28/2019
0.26
3.28%
Wolverine World Wide, Inc. (WWW)
3/29/2019
0.10
1.04%
The additional ex-dividend stocks can be found HERE . (If you have been to the page before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists HERE . Most of the lists are free.
Dividend definitions:
Declaration date: the day that the company declares that there is going to be an upcoming dividend.
Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.
Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.
Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.
Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.
Disclosure: Author did not own any of the above at the time the article was written.
The cannabis company Tilray (TLRY) jumped from 22.93 a share to around 300 a share from the beginning of August to late September. This is in spite of the fact that the company hasn’t generated any earnings. Many believe that the reason for the price rise in the stock is due to a short squeeze. When the stock rises fast for any reason, short sellers scramble to cover their positions by buying the stock, and thereby driving up the price of the stock even more.
So how can you make money on the long side from short squeezes? One technique that stock traders utilize is buying short squeeze stocks, companies have been heavily shorted. Here is a more extensive explanation of what a short squeeze is.
When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.
Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.
Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:
Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.
Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.
Short Percentage Increase ~ This is the percentage increase in in the number of short sellers from the previous month.
Here is one example. Big Lots (BIG) is a stock that is heavily shorted. As a matter fo fact, 25.2% of the float is shorted. In addition, the number of shares shorted has increased by 1% over the last reported two week period. Finally, the short interest ratio is 11.5. That means it would take the short sellers over eleven days to cover their positions, based on the number of shares that trade each day on average.
So what stocks are heavily shorted that may be worth a closer examination? Check out the following list, but be aware, that often some stocks are heavily shorted for a reason. All these stocks have price for earnings ratios and forward P/E ratios of less than 15, and a price sales ratio of less than one.
Hopefully, some of these stocks will squeeze some juice out of your portfolio.
The following is a short list of some of the many stocks going ex dividend during the next month.
Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.
This technique generally works in bull markets and flat or choppy markets, but you need to avoid the strategy during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.
The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and many with yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and annual yield.
Schlumberger N.V. (SLB)
9/4/2018
0.50
3.07%
General Motors Company (GM)
9/6/2018
0.38
4.21%
CBS Corporation (CBS)
9/7/2018
0.18
1.35%
MGM Resorts International (MGM)
9/7/2018
0.12
1.66%
HP Inc. (HPQ)
9/11/2018
0.139
2.28%
Bed Bath & Beyond Inc. (BBBY)
9/13/2018
0.16
3.44%
Domino’s Pizza Inc (DPZ)
9/13/2018
0.55
0.75%
Nasdaq, Inc. (NDAQ)
9/13/2018
0.44
1.90%
World Wrestling Entertainment, Inc. (WWE)
9/13/2018
0.12
0.60%
Las Vegas Sands Corp. (LVS)
9/18/2018
0.75
4.57%
Yamana Gold Inc. (AUY)
9/27/2018
0.005
0.72%
Xerox Corporation (XRX)
9/27/2018
0.25
3.62%
The additional ex-dividend stocks can be found HERE . (If you have been to the page before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists HERE . Most of the lists are free.
Dividend definitions:
Declaration date: the day that the company declares that there is going to be an upcoming dividend.
Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.
Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.
Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.
Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.
Disclosure: Author did not own any of the above at the time the article was written.
Here is our latest update on the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.
This technique generally works only in bull markets, and can work in flat or choppy markets, but you need to avoid the technique during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.
The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the quarterly dividend amount, and annual yield.
Ameren Corporation (AEE)
9/12/2017
0.44
2.93%
Hewlett Packard Enterprise (HPE)
9/12/2017
0.065
1.82%
HP Inc. (HPQ)
9/12/2017
0.133
2.70%
H&R Block, Inc. (HRB)
9/12/2017
0.24
3.46%
Bed Bath & Beyond Inc. (BBBY)
9/14/2017
0.15
1.88%
The additional ex-dividend stocks can be found here at wstnn.com. (If you have been to the website before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists at WallStreetNewsNetwork.com or WStNN.com. Most of the lists are free.
Dividend definitions: Declaration date: the day that the company declares that there is going to be an upcoming dividend.
Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.
Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.
Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.
Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.
Disclosure: Author did not own any of the above at the time the article was written.
Looking for some interesting moves in some stocks this upcoming week? Check out the companies that will be reporting earnings.
If earnings exceed analysts’ expectations, the stocks can shoot up. If the numbers underperform, the stock can tank. Then again, occasionally, stocks don’t move the way you would have expected.
Anyway, many traders use earnings plays for trading strategies. Also, option traders look for high implied volatility of stocks for for option selling strategies.
Here are many of the enormous number of stocks reporting earnings this week:
Monday
LEN
WOR
Tuesday
BBRY
KMX
DRI
FDX
GIS
NKE
NAV
Wednesday
BBBY
MU
PAYX
RHT
Thursday
CALM
RAD
Friday
na
If you like interesting stock lists like this, be sure to check out many of the free stock lists here at WallStreetNewsNetwork.com.
Looking for some interesting moves in some stocks this upcoming week? Check out the companies that will be reporting earnings this week.
If earnings exceed analysts’ expectations, the stocks can shoot up. If the numbers underperform, the stock can tank. Then again, occasionally, stocks don’t move the way you would have expected.
Anyway, many traders use earnings plays for trading strategies. Also, option traders look for high implied volatility of stocks for for option selling strategies.
Here are many of the enormous number of stocks reporting earnings this week:
Monday
ASNA LITB
Tuesday
ADBE
FDX
KBH
LEN
Wednesday
BBBY
KMX
GIS
RHT
SCS
Thursday
AZO
RAD
Friday
FINL
If you like interesting stock lists like this, be sure to check out many of the free stock lists here at WallStreetNewsNetwork.com.
