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High Short Interest Stocks

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Re: High Short Interest Stocks

#81

Post by ahepp »

alasdair_ wrote: post #70
epistasis wrote: post #65

Earlier quoted context omitted.

And further, these were large sophisticated investors that should have known when to get out and take their losses (as Melvin eventually did). For us small time folks we can do a limit short so that our risk exposure is limited.

Is there proof Melvin actually got out? All I saw was a “source” on CNBC. EDIT: This is the story: https://www.cnbc.com/video/2021/01/27/melvin-capital-sells-o... It's full of plausible deniability phrases like "from what I understand" and it's very much a game of telephone. They could easily say "when I meant we were out of the stock, I meant that we had covered some of our positions" or similar. I can't find a non-…

FT reported it as well. Not bulletproof, but I think they have a bit more reputation than CNBC.

Perhaps I'm naïve, but I think to lie about such a thing would pretty clearly fall afoul of the law?

Re: High Short Interest Stocks

#82

Post by jeffbee »

xxpor wrote: post #48
jeffbee wrote: post #17

Earlier quoted context omitted.

There have been many attempted short squeezes, notoriously the attempt by the founder of Piggly Wiggly to squeeze shorts 100 years ago. He ended up broke, of course, because cornering the market on shares that you pumped to a ridiculous price is never a great idea. More recently there was a cartel that tried to squeeze Volkswagen shorts in 2008.

The only reason the Piggly Wiggly guy ended up broke is because they changed the settlement rules out from under him. It was extremely legally questionable.

I think we should clarify here that trying to corner the market isn't some kind of by-the-book playing, it's an immoral scheme and whatever happens to such people is well-deserved.

Re: High Short Interest Stocks

#83

Post by konjin »

apaprocki wrote: post #63
55555 wrote: post #58

I know there are a lot of Wall st guys here. Can someone explain what's really going to happen here in regards to the short squeeze? Is it really so simple? How will the shorts be able to cover? Also, is this page correct in saying that GameStop is the only stock on all listed US markets that's shorted over 100%?

Re: 100%, yes for companies with a reasonable minimum market cap. The one thing not really being explained enough is that short interest as reported through the exchanges is reported bi-monthly. You can imagine that with current events that is an eternity to wait for the next update.

Also worth noting is that these are the official channels, there are plenty of dark pools where there are no rules but all sorts of exotic instruments are being traded in volumes that boggle the mind.

I worked at one quite some years back.

Re: High Short Interest Stocks

#84

Post by swang »

toast0 wrote: post #41
nateberkopec wrote: post #16

What's the reason for all the shorting on Fubo? You would think that a streaming business would be attracting far more long interest right now.

Streaming is a business like gyms. The more people use your product, the worse it is. Everytime some one watches something, there goes some $ for the rights, and some $ for the bandwidth. If everyone has lots more time to watch your product, and they do, that's bad for your bottom line. And you can't charge more, because there's tons of options. And internet ad prices were trending down (not sure if that's still true…

i worked on a streaming product but not on the marketing/financial side but none of this sounds right at all. the biggest cost of a streaming service is paying for the channel rights (if doing live tv) and for the vod/streaming rights. nothing else has that big of an effect.

and having more customers gives you more leverage against the right holders since they themselves need eyeballs so they can tell their advertisers how many eyeballs are watching these streams. this allows them to charge advertisers way more.

Re: High Short Interest Stocks

#85

Post by dmw_ng »

apaprocki wrote: post #63
55555 wrote: post #58

I know there are a lot of Wall st guys here. Can someone explain what's really going to happen here in regards to the short squeeze? Is it really so simple? How will the shorts be able to cover? Also, is this page correct in saying that GameStop is the only stock on all listed US markets that's shorted over 100%?

Re: 100%, yes for companies with a reasonable minimum market cap. The one thing not really being explained enough is that short interest as reported through the exchanges is reported bi-monthly. You can imagine that with current events that is an eternity to wait for the next update.

There are higher frequency indicators capturing essentially the same dynamic derived from securities lending agents (e.g. borrow rate, availability) and option markets (estimated from end of day open interest)

Re: High Short Interest Stocks

#86

Post by [deleted] »

konjin wrote: post #83
apaprocki wrote: post #63

Earlier quoted context omitted.

Re: 100%, yes for companies with a reasonable minimum market cap. The one thing not really being explained enough is that short interest as reported through the exchanges is reported bi-monthly. You can imagine that with current events that is an eternity to wait for the next update.

Also worth noting is that these are the official channels, there are plenty of dark pools where there are no rules but all sorts of exotic instruments are being traded in volumes that boggle the mind. I worked at one quite some years back.

[deleted]

Re: High Short Interest Stocks

#87

Post by ceh123 »

konjin wrote: post #83
apaprocki wrote: post #63

Earlier quoted context omitted.

Re: 100%, yes for companies with a reasonable minimum market cap. The one thing not really being explained enough is that short interest as reported through the exchanges is reported bi-monthly. You can imagine that with current events that is an eternity to wait for the next update.

Also worth noting is that these are the official channels, there are plenty of dark pools where there are no rules but all sorts of exotic instruments are being traded in volumes that boggle the mind. I worked at one quite some years back.

Could you explain a little bit more about this? Or point me in a direction where I could find out more? Super curious. Thanks

Re: High Short Interest Stocks

#88

Post by apaprocki »

dmw_ng wrote: post #85
apaprocki wrote: post #63

Earlier quoted context omitted.

Re: 100%, yes for companies with a reasonable minimum market cap. The one thing not really being explained enough is that short interest as reported through the exchanges is reported bi-monthly. You can imagine that with current events that is an eternity to wait for the next update.

There are higher frequency indicators capturing essentially the same dynamic derived from securities lending agents (e.g. borrow rate, availability) and option markets (estimated from end of day open interest)

Of course, but those other estimated/derived numbers are not what retail investors are looking at. Everyone tries to get an edge with math, models, or subsets of data and fill the gaps, but the official number is a reported figure.

Re: High Short Interest Stocks

#89

Post by apaprocki »

fireattack wrote: post #45
myroon5 wrote: post #7

Finviz also has this information in addition to many other metrics: https://finviz.com/screener.ashx?v=131&o=-shortinterestshare

Why do they have some significant differences? For example, the second, $ATUS, isn't even listed on OP's site.

Bad data, code, or both? It is not 76% short. Are you going to go to fundamentals and verify each raw and derived data point from the feed you consume much like you would a news source?

Re: High Short Interest Stocks

#90

Post by antoniuschan99 »

xxpor wrote: post #48
jeffbee wrote: post #17

Earlier quoted context omitted.

There have been many attempted short squeezes, notoriously the attempt by the founder of Piggly Wiggly to squeeze shorts 100 years ago. He ended up broke, of course, because cornering the market on shares that you pumped to a ridiculous price is never a great idea. More recently there was a cartel that tried to squeeze Volkswagen shorts in 2008.

The only reason the Piggly Wiggly guy ended up broke is because they changed the settlement rules out from under him. It was extremely legally questionable.

I read this today about the Piggly Wiggly story was fascinating!

https://twitter.com/dollarsanddata/status/135456144478064640...

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