Short Squeeze AMC + GME Stock Examples

They offer a list of shorted stocks, narrowing down the short-selling information based on the number of short-sold shares. In addition to these official websites, the stock exchanges also publish short interest stock information. https://www.bigshotrading.info/ Traders, therefore, can find the related information on Yahoo Finance as well as on New York Stock Exchange or other portals and exchanges as desired. AMC Theatersrecordeda loss worth $4.6 billion post-COVID-19 in 2020.

For starters, most of Volkswagen’s stock was held by Porsche SE and the German government, which left a relatively small number of shares trading in the open market. Additionally, there was widespread speculation that Porsche SE would make a move to buy out the other shareholders, which put significant upward pressure on Volkswagen’s stock price. Let’s examine a few recent examples of short squeezes that have made the news and are a common topic of conversation for beginning investors.

Short Squeeze Definition

This is simply because you are not interested in the long term growth of an asset such as a company, index, or a commodity. INVESTMENT BANKING RESOURCESLearn the foundation of Investment banking, financial modeling, valuations and more.

Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts. Before a short squeeze takes place, the general sentiment surrounding the underlying company’s outlook is disproportionally negative. Click here to sign up for our newsletter to learn more about financial literacy, investing and important consumer financial news. Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments. Get Started Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content. While some hedge funds were hurt and some retail traders made fortunes — at least on paper — this still may end badly.

Limit your exposure to overnight risks

This is a short squeeze stocks list, or short interest tracker, that can be used as an integral part of your investing or trading research. This model is a proprietary, multi-factor model that uses a number of factors, including Short Interest % Float, Short Borrow Fee Rates, and others. In fact, short-sellers can protect other investors from suffering capital losses by pointing out issues within companies that retail investors could have neglected – contrary to what many assume. Despite the negative perception, short selling actually plays a crucial role in the markets with regards to reducing volatility and transparency from public companies. GME attracted substantial media attention as retail investors celebrated the losses of hedge funds.

As such situations arise, more and more short sellers are forced to cover their position. Hedge funds recently pulled back Short Squeeze on their short positions as a precautionary measure, which retail investors again interpreted as yet another victory.

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You will have to buy the stock back to close out your position, no matter how high the price soars. This is a short squeeze, as it occurs when the price of a heavily shorted stock shoots up. Short sellers then have to pay higher prices to close their positions, creating more upward pressure. Brokerage services for alternative assets available on Public are offered by Dalmore Group, LLC (“Dalmore”), member of FINRA & SIPC. “Alternative assets,” as the term is used at Public, are equity securities that have been issued pursuant to Regulation A of the Securities Act of (“Regulation A”). These investments are speculative, involve substantial risks , and are not FDIC or SIPC insured. Alternative Assets purchased on the Public platform are not held in an Open to the Public Investing brokerage account and are self-custodied by the purchaser.

Chewy cofounder Ryan Cohen and Scion Asset Management’s Michael Burry both took long positions on GME, and Cohen became the chairman of GME’s committee to shift to e-commerce. “Chase Private Client” is the brand name for a banking and investment product and service offering, requiring a Chase Private Client Checking℠ account. Whether you choose to work with an advisor and develop a financial strategy or invest online, J.P. Morgan offers insights, expertise and tools to help you reach your goals. JPMorgan Chase & Co., its affiliates, and employees do not provide tax, legal or accounting advice. Information presented on these webpages is not intended to provide, and should not be relied on for tax, legal and accounting advice.

Stocks Ripe for a Short Squeeze in 2023

Even in a best-case scenario, a short squeeze is a quick occurrence — not a long-term strategy. Buying into a company in the hope of lassoing a rocketing price is speculative at best.

For months, short-sellers have lost billions at the hands of the Elon Musk-led company. While a majority of Markets Insider analysts had a Sell rating on the stock, it held up well on July 19, 2021, during a selloff sparked by an increasing number of cases of the delta COVID variant.