Retail investors are jumping once again on meme stocks with high short interest to cause a short squeeze. A short squeeze happens when hedge funds who shorted a particular stock must buy back to the stock at a higher price to cover their position.
So far this year, hedge funds have racked up over $6 billion in losses due to retail investors and even institutional buyers going large on highly shorted companies. In this article, I created a list of the best short squeeze stocks with a high short interest.
Best Short Squeeze Stocks with High Short Interest
|Company (TICKER)||Short Interest (%)|
|Workhorse Group (WKHS)||51|
|Clover Health Investments (CLOV)||45|
|Blink Charging (BLNK)||33|
|The Geo Group (GEO)||34|
|Bed, Bath and Beyond (BYND)||31|
|Clovis Oncology (CLVS)||30|
Short Squeeze Trading Tips & Advice
In this section, I'll share a few tricks & tricks that I learned along the way when buying high short interest stocks.
Pay Attention to Rising or Failing Short Interest
The whole point of a short squeeze is to force the shorts to cover their positions. If short interest increases then there is more room for the stock to squeeze higher. If shorts are covering their positions then there will be less upside in the future.
It's very important to buy dips when trading short squeeze stocks. Usually, the price action will be crazy so pay attention to intraday highs and lows to see if you can buy at a cheaper price. As long as the trend is moving upwards then you shouldn't worry about a freefall crash.
When the Shorts cover, it's time to exit the position
Many short squeeze stocks trade independent of fundamentals so be careful when shorts start to cover.
Useful Short Squeeze Stock Resources
- Ortex: The most useful and accurate website for tracking changes in short interest. It's used by all the big Youtubers like Trey Trades and Matt Kohrs. Costs $79 for a monthly subscription or $49 billed annually.
- FIntel.io: Another good website for tracking changes in short interest volume. Requires a paid subscription too.
- High Short Interest Stocks: A free, simple website that provides highly shorted stocks with additional info like free float and shares outstanding.