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.
This is a trend that just doesn’t want to go away, and there are still some great opportunities out there…
So now is a good time to talk about the best short squeeze stocks to watch out for right now — and WealthPress Senior Strategist Roger Scott has six of them for you today. So get ready to take some notes and get comfortable.
6 Short Squeeze Stocks to Watch out for
Before we dive into which short squeeze stocks to watch, let’s talk about what a short squeeze is for the uninitiated…
In plain English, 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 Roger do to find these short squeeze stocks to watch?
He took the total number of shares being shorted and divided it by the total amount of outstanding shares.
Then he filtered out companies with smaller 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 the quick video below to get all six of Roger’s short squeeze stocks to watch. And if you plan to trade any of them, be sure to let us know about it in the comments section at the bottom of this page.
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P.S. Ever wonder why Wall Street always seems to be one step ahead of the average Joe trader?