Short squeeze stocks like GameStop and AMC have taken center stage ever since retail traders on the WallStreetBets subreddit banded together to send these names to the moon.
I haven’t talked about short interest in awhile, but there are still some great opportunities out there…
So I figured it would be a good time to talk about the best short squeeze stocks to watch out for right now — and there are six of them, folks, which means you should grab your best note-taking pen and get comfortable.
6 Short Squeeze Stocks to Watch out for
But before we get into which short squeeze stocks to watch, I want to explain what a short squeeze is for my readers who might have forgotten…
In layman’s terms, a short squeeze happens when short sellers get trapped in their positions.
That means a certain percentage of a stock’s open interest (or the amount of outstanding shares) is being shorted. When those traders cover their shorts — or go long — which they have to do, it tends to create a short squeeze.
So what did I do to find these short squeeze stocks to watch?
I calculated the total number of shares being shorted and divided it by the total amount of outstanding shares.
By the way, I picked stocks that don’t have huge market caps because they tend to be less liquid.
When a stock that doesn’t have a high float goes through a buying frenzy or runup, it creates the opportunity for a big rally and short squeeze.
So check out my short video below to get all six of my short squeeze stocks to watch. And if you plan to trade any of them, be sure to let me know about it in the comments section at the bottom of this page.
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