Keeping the group in the same order, here are levels of short interest as percentages of available shares and in dollars:įactSet’s data on short positions as a percentage of shares outstanding is updated twice a month. Tonya Garcia described the company and its large user base before the IPO. The mobile e-commerce company’s stock opened below its initial public offering price on Dec. Is one of two stocks on the new list that have fallen this year. Read: Wendy’s stock run-up prompts analyst downgrade but breakfast is driving growth Thornton McEnery dug into the action on June 8, which may have included confusion over Wendy’s ticker symbol, when the stock rose 26%. Is another meme stock whose addition to the group may be a bit confusing, as the stock isn’t heavily shorted and the company is stable. The company’s following as a meme stock seems to spring more from its growth prospects than from short interest, which peaked at 8.5% of shares available for sale, according to FactSet. Palantir’s stock was up 3% for 2021 through June 9, but its market cap had increased by 26% because the company had been raising cash by selling additional shares to investors. Here are the six additional meme stocks, following our initial group of eight, sorted by market capitalization as of the close on June 9: Read: Newest meme stock darling Clover Health is popping. The stock is 36.6% sold short, according to FactSet. On June 9, for example, shares of Clover Health Investments Corp.įell 24% after rising 86% the day before. That type of action among a large group of short-sellers pushes the price higher in a spiral - a short squeeze. If you run out of cash as the price keeps rising, you will be forced to cover at a loss. Because of the risk in taking a short position, if the share price goes against you (higher), your broker will keep increasing its collateral requirements. To have a short position, you need to have a margin account with a broker - an account that lets you borrow to invest or trade. You are hoping to cover at a lower price than you sold the shares for, to make a profit. “Covering” a short position is when you buy back the shares to return them to the investor who lent them to you. You never know how high the price might rise if you have gotten the trade wrong. But if you short a stock, your risk potential is unlimited. If you simply buy a stock hoping it will go up, all you risk is the money you invest. Shorting means borrowing a company’s shares and selling them immediately, in the hope of buying them back at a lower price, returning them to the lender and pocketing the difference. Professional investors have traditionally short-sold shares of companies they believe will perform worse than most other investors or analysts expect. Traders looking to group together on social media to make quick killings by pushing up share prices of companies at early stages or those going through difficult times have been setting up short squeezes.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |