Do you want to find high short interest stocks? This guide will teach you everything you need to know about short interest and how to use it to find profitable investment opportunities.
We will cover everything from what short interest is to how to calculate it for individual stocks. Plus, we will provide a list of the best high short interest stocks that you can start investing in today!
What is short interest in stocks?
Short interest is simply the number of shares that have been sold short by investors. This information is important because it can indicate how bullish or bearish investors are on a particular stock. For example, if there are a lot of short sellers, this could indicate that they believe the stock price will fall in the future. Conversely, if there are very few short sellers, this could indicate that they believe the stock price will rise.
What does short interest float mean?
A short interest float is the number of shares that are borrowed and shorted as a percent of the overall shares publicly traded. Short interest float is another name for short interest percent.
Float refers to the number of shares that are available for trading. A high float means more shares are available for trading, making it easier for buyers and sellers to trade without impacting the stock price. A low float means fewer shares are available for trading, making it more difficult to trade without impacting the stock price.
What is the short interest percentage?
The short interest percentage is simply the number of shares sold short divided by the total number of shares outstanding. Watch the short interest percent because it indicates how many investors are bearish on a particular stock. For example, if the short interest percentage is high, this could indicate that many investors believe that the stock price will fall in the future.
Short Interest % Calculation
Short Interest Percent = # shares sold short / #of shares outstanding
What is the short interest ratio?
The short interest ratio is the number of days it would take all of the current short sellers to cover their positions if there were no new short sellers. Covering positions means buying back the shares they have borrowed for shorting purposes. For example, if the short interest ratio is high, it would take longer for a short seller to buy back shares at the current average trading volume; this is to the advantage of bulls when a short squeeze is in motion.
What is short interest and days to cover?
The days to cover or the short interest ratio refers to the number of days it would take for all of the current short sellers to cover their positions, given the average trade volume if there were no new short sellers. The short interest is simply the number of shares that have been sold short by investors.
Short interest and days to cover must be considered together when looking at short selling activity.
What is a high short interest?
High short interest is a stock with many shares sold short by investors. This data is important because it can indicate how bearish or bullish investors are on a particular stock. For example, if the short interest is high, this could indicate that many investors believe that the stock price will fall in the future.
What is considered a high short interest?
Most investors consider a high short interest to be great than 5.%, but our data suggest that the 90th percentile of US stocks has a short interest of >5.7%. This means that the highest shorted 10% of US stocks have a short interest of 5.7% or more.
NYSE & NASDAQ Stocks Short Interest Percent
|Short Interest Percentiles||Short Interest %|
|10th Percentile||0.9% – Low|
|Median||2.0% – Average|
|90th Percentile||5.7% – High|
Table 1: 4138 Nasdaq & NYSE Stocks 2022 – Researched by Liberated Stock Trader using Stock Rover
What is the average short interest in a stock?
According to our research, the median average short interest in a stock is 2% when measured across the 4,138 largest capitalized companies on the Nasdaq and NYSE. (See Table 1 above)
Chart: Short Interest % vs. Short Interest Ratio
What is considered high short interest coverage?
Chart 1 shows that a high short interest coverage is anything longer than 10 days, but the top 10% of short interest coverage companies are more than 19 days.
The data shows that when broken into percentiles and medians, the top 10% of companies with a high short interest ratio are above 19 days. The Median short interest coverage is 4.8 days, and the lowest 10% of stocks have coverage of 1.8 days.
NYSE & NASDAQ Stocks Short Interest Ratio/Coverage
The median average short interest coverage of 4,138 stocks on the NYSE and Nasdaq is 4.8 days. The longest short interest ratios in the 9th percentile are 19.3 days.
|Short Interest Percentiles||Short Interest Coverage (days)|
|10th Percentile||1.8 – Low|
|Median||4.8 – Average|
|90th Percentile||19.3 – High|
Table 2: 4138 Nasdaq & NYSE Stocks 2022 – Researched by Liberated Stock Trader using Stock Rover
4 Easy Ways to find a stock’s short interest?
1. Use Finviz to find a stock’s short interest
Jump to Finviz – Type in the stock ticker – review short interest
2. Use Stock Rover to scan for short interest
Stock Rover allows scanning the entire US stock market for short selling and short interest information. The image below shows the depth of short trading screening possible, 4,500 stocks to be exact.
Register for free with Stock Rover and import this screener code to get a complete list of stocks in the USA with a short interest ratio and short interest percent.
Stock Rover Screen 1.0
Short Interest Ratio
Exchange: NASDAQ, NYSE
3. Visit Barron’s to see short interest information
Barron’s provides a simple way to see the short interest for a stock. Here is a link to the Barron’s page for Tesla, where you can see the company’s short interest information.
4. Other ways to find short interest data
There are a few different ways to find a stock’s short interest. One way is to look at the major exchanges that it trades on. The New York Stock Exchange (NYSE) and Nasdaq have websites to view this information. Another way to find this information is through online brokers such as TD Ameritrade, E*TRADE, and Charles Schwab. Finally, you can find this information from financial news websites such as Yahoo! Finance and CNBC.
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Is high short interest good or bad?
There is no right or wrong answer regarding whether high short interest is good or bad. It depends on your investment strategy and what you are looking for in a stock. Some investors believe that high short interest is a good thing because it indicates a lot of bearish investors in the market. This could indicate that the stock price will fall and that there could be a buying opportunity. Other investors believe that high short interest is bad because it indicates that many are betting against the stock. This could indicate that the stock price will fall and that you should avoid the stock.
How to find stocks with high short interest?
The quickest way to find stocks with high short interest is to use the Finviz stock screener; use this link to jump straight to a list of high short interest stocks. Alternatively, follow this easy 4-step process.
4 Steps to Find High Short Interest Stocks Using Finviz
- Visit Finviz and click on Screener
- Select Descriptive Filters
- Select Float Short > 20%
- Select Charts
Quick Links to the Highest Short Interest Stocks on Finviz
How to calculate short interest?
To calculate short interest, you need to divide the number of shares sold short by the total number of shares outstanding. This data helps you understand how bearish or bullish investors are on a particular stock. For example, if the short interest is high, this could indicate that many investors believe that the stock price will fall in the future.
How often is short interest reported?
Short interest is reported on a bi-weekly basis by the exchanges. This means that every two weeks, you will be able to see updated information on how many shares have been sold short by investors. For example, if the short interest is high, this could indicate that many investors believe that the stock price will fall in the future.
When is short interest reported?
Short interest report dates vary from month to month. The NYSE and Nasdaq typically disseminate short interest reports between the 9th-12th and 24th-27th days of every month. Further details on short interest reporting data are found on the FINRA website.
How does short interest affect stock price?
Short interest can have a big impact on a stock’s price. When many investors are shorting a stock, it can put pressure on the stock price and cause it to fall. Conversely, when many investors are buying a heavily shorted stock, it can put pressure on the stock price and cause it to rise; this is called a short squeeze.
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What is a short squeeze?
A short squeeze is when many investors buy a heavily shorted stock, which puts pressure on the stock price and causes it to rise. This is called a short squeeze because the shorts (investors who are betting against the stock) are getting squeezed out of their positions.
How can short interest exceed 100?
It is rare but short interest can exceed 100% when many investors are betting against a stock and the number of shares sold short exceeds the number of shares outstanding. This can happen because naked short sellers do not borrow the stock; they sell it without owning it.
Which stocks have a short interest over 100%
Currently, two companies have a short interest percent of over 100, Continental Resources (CLR) at 201.50% and Bed Bath & Beyond (BBBY) at 101.10%. Here is a list of the highest short interest stocks over 50%.
|Company||Short % of float||Short Interest Ratio|
|Bed Bath & Beyond||101.10%||2.1|
|European Wax Center||57.00%||9.6|
Table 3: High Short Interest Stocks Over 50%
Popular Stocks for Short Squeeze Opportunities.
Tesla short interest
Tesla is a popular stock that traders look to short sell or put pressure on a short squeeze. We can see on Finviz that a short squeeze is not a real possibility with Tesla in 2022, as the short float and short ratio are too small.
AMC short interest
While the Reddit investors continue to play short squeeze opportunities, Barron’s reports a short interest float of 18%.
GME short interest
With a short float of 23% and a short ratio of 4.51, Gamestop is still in the category of an interesting short squeeze opportunity.
Short Interest Summary
Short interest measures how many shares of a particular stock have been sold short by investors. It can be used to gauge investor sentiment on a particular stock and provide insight into whether investors believe the stock price will go up or down in the future. A high short interest ratio indicates that many investors believe the stock price will fall. In contrast, a low short interest ratio indicates that many investors believe the stock price will go up. Short interest is typically reported on a bi-weekly basis.
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