trendscanner
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.
I’ve 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. Here’s the approach I have so far.
1. Look at candidate stocks that have the highest percentage short interest. In particular, I’m 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. I’m 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 hasn’t 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 didn’t 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?
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Eman93
4,750 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 Ranking™ 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
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Eman93
4,750 posts
msg #84972
- Ignore Eman93 |
12/27/2009 9:07:33 PM
this is on the home page of www.shortsqueeze.com
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trendscanner
265 posts
msg #84973
- Ignore trendscanner |
12/28/2009 8:07:57 AM
thanks Eman, I'll check it out.
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traderpro
37 posts
msg #84974
- Ignore traderpro |
12/28/2009 9:21:02 AM
Try This screener
http://finviz.com/screener.ashx?v=111&f=sh_insttrans_pos,sh_relvol_o0.5,sh_short_o30&ft=4
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karennma
8,057 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%"!
:>)
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karennma
8,057 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?
YRCW!!
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