StockFetcher Forums · General Discussion · Finding Short Squeeze Opportunities<< >>Post Follow-up
265 posts
msg #84966
Ignore trendscanner
12/27/2009 4:56:03 PM

Hope everyone has been enjoying the holidays and taking some time off.

Iíve been looking at how to find upcoming potential short squeeze opportunities and how to get on the right side of them before they happen. Have one play in progress now. Hereís the approach I have so far.

1. Look at candidate stocks that have the highest percentage short interest. In particular, Iím looking for optionable stocks, preferably with significant open interest.

2. Once I identify potential candidates, check the average daily volume, shares short the previous month versus current, the short ratio, and how recent the short data are. Iím looking for a short ratio of at least 3.

3. Look at the charts for the top candidate stocks to see what has happened since the latest reporting date for short interest. Check to see whether a short squeeze may have already occurred and look at what has happened with price and volume.

4. If stock price has made one or more up moves since the last short data report date, especially on higher volume, then that candidate is out, since a lot of short covering may have already occurred. If the stock price hasnít moved much or has declined, it remains a candidate.

5. Once I find a candidate, check the chart to see if price has reached support or has started to go higher.

6. If I find a stock that meets the above criteria (high short interest, short ratio > 3, optionable, attractive price/volume action), look at the slightly ITM or slightly OTM calls to see if I can find reasonably priced options and what the open interest is. Buy calls for one or two of the top candidates if option prices look reasonable.

I went through this process last week and found a few stocks that looked like good candidates. Ended up buying Jan 17.5 calls for one of them, BKS, on Thursday during an intraday pullback.

Other candidates that I didnít buy so far - SYNA starting an upmove on Dec 21 but hit gap resistance just under 30. As of Nov 30 it had 17 million shares short out of a float of about 32 million and a short ratio of 19. This one looks like it has room to run if it breaks above resistance. GTXI also looks ready to get squeezed upwards. High short interest, short ratio over 5, has declined slightly since last short data reporting date and chart looks ready for an upmove. May buy either of these this coming week depending on how the market behaves.

Am hoping to find one or two good short squeeze opportunities each month. Has anyone tried anything similar and, if so, have you had good results playing these opportunities?

4,689 posts
msg #84971
Ignore Eman93
12/27/2009 9:05:50 PM

World Acceptance Corporation $ 36.17
WRLD 0.93

Short Interest (Shares Short) 5,476,500
Days To Cover (Short Interest Ratio) 24.8
Short Percent of Float 34.39 %
Short Interest - Prior 5,594,900
Short % Increase / Decrease -2.12 %
Short Squeeze Rankingô 838

% From 52-Wk High ($ 36.33 ) -0.44 %
% From 52-Wk Low ($ 10.31 ) 71.50 %
% From 200-Day MA ($ 25.37 ) 29.86 %
% From 50-Day MA ($ 30.20 ) 16.51 %
Price % Change (52-Week) 98.30 %

Shares Float 15,923,664
Total Shares Outstanding 16,249,812
% Owned by Insiders 1.90 %
% Owned by Institutions %
Market Cap. $ 587,755,700
Trading Volume - Today 205,807
Trading Volume - Average 221,200
Trading Volume - Today vs. Average 93.04 %
Earnings Per Share 4.11
PE Ratio 8.80
Record Date 2009-DecB

Sector Financial
Industry Credit Services
Exchange NAS

4,689 posts
msg #84972
Ignore Eman93
12/27/2009 9:07:33 PM

this is on the home page of

265 posts
msg #84973
Ignore trendscanner
12/28/2009 8:07:57 AM

thanks Eman, I'll check it out.

37 posts
msg #84974
Ignore traderpro
12/28/2009 9:21:02 AM

Try This screener,sh_relvol_o0.5,sh_short_o30&ft=4

7,051 posts
msg #84978
Ignore karennma
12/28/2009 9:57:13 AM

Hmmmm ... THAT'S interesting!!

Re: as per your FINVIZ url ...

Both FUQI and STEC just made huge moves, yet the short float is "over 30%"!


7,051 posts
msg #84979
Ignore karennma
12/28/2009 9:59:58 AM

Hmmm ... ALSO very interesting ... !
I change "Instifutional Transactions" from "Positive (>0%) to
"Very Negative <20%), and guess what came up?


StockFetcher Forums · General Discussion · Finding Short Squeeze Opportunities<< >>Post Follow-up

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