What is Short Interest ratio? Short Squeeze ? Citron Research?

#shortinterest #daytrading #CitronResearch What is Short Interest ratio? Short Squeeze ? Citron Research? A short squeeze is a rapid increase in the price of a stock owing primarily to technical factors in the market rather than underlying fundamentals A short…

What is Short Interest ratio? Short Squeeze ? Citron Research?

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#shortinterest #daytrading #CitronResearch

What is Short Interest ratio? Short Squeeze ? Citron Research?

A short squeeze is a rapid increase in the price of a stock owing primarily to technical factors in the market rather than underlying fundamentals

A short squeeze can occur when there is a lack of supply and an excess of demand for the stock due to short sellers covering their positions

Short squeezes result when short sellers of a stock move to cover their positions, purchasing large volumes of stock relative to the market volume

Since covering their positions involves buying shares, the short squeeze causes a further rise in the stock’s price

This newly increased price can, in turn, trigger additional margin calls and short covering, which in turn may drive up the price further still in a vicious feedback loop

Short squeezes tend to happen in stocks that have expensive borrow rates

These expensive borrow rates can increase the pressure on short sellers to cover their positions, further adding to the reflexive nature of this phenomenon

Day traders via Reddit board and Robinhood have defeated Wall Street firms like Citron Research in trading of stocks like GameShop and exposed short squeeze

What is Citron Research?

Citron Research has been publishing columns for over 17 years, making it one of the longest-running online stock commentary websites

With over 150 reports, Citron has amassed a track record identifying fraud and terminal business models second to none among any published source

The goal of this website is and has always been to provide truthful information in an entertaining format to the investing public

Our goal has never been to engage in “gotcha” journalism

Readers are always encouraged to consider this and all information available regarding any potential investments, to seek professional assistance as necessary, and to draw their own conclusions

Citron Research has been Voted #1 Activist Short Seller by The Activist Investing Annual Review 2019.

What is Short Interest ratio?

The short interest ratio also called days-to-cover ratio represents the number of days it takes short sellers on average to cover their positions, that is repurchase all of the borrowed shares

It is calculated by dividing the number of shares sold short by the average daily trading volume, generally over the last 30 trading days

The ratio is used by fundamental and technical traders to identify trends

The days-to-cover ratio can also be calculated for an entire exchange to determine the sentiment of the market as a whole

If an exchange has a high days-to-cover ratio of around five or greater, this can be taken as a bearish signal, and vice versa

The short interest ratio is not to be confused with the short interest, a similar concept whereby the number of shares sold short is divided by the number of outstanding shares

The latter concept does not take liquidity into account

What is short squeeze ?

A short squeeze can occur if the price of stock with a high short interest begins to have increased demand and a strong upward trend

To cut their losses, short sellers may add to demand by buying shares to cover short positions, causing the share price to further escalate temporarily

In markets with an active options market short sellers can hedge against the risk of a short squeeze by buying call options

Conversely, short squeezes are more likely to occur in stocks with small market capitalization and a small public float

Hashtags short interest, day trading, Citron Research

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