If you can handle the pressure, these are the short-squeeze candidates to consider. That should give you more breadth in terms of rewards. In this case, we’re talking about companies that have attracted institutional bears. Rather than identify short-squeeze stocks based on the traditional pathway, I’m going to consider equities that have aggressively bearish sentiment in their options order flows. However, for this article, I’m going to consider a different approach. Recently, one popular platform is Fintel’s Short Squeeze Leaderboard. Traditionally, the way market gamblers identify stocks to buy for a short squeeze is to pull up screeners that filter for equities that have higher-than-average short interest relative to their float. That’s because these short-squeeze candidates play on the emotion of panic that is, bullish contrarians attempt to drive prices of heavily targeted securities higher, thus panicking the bears. While symbolizing one of the riskiest mechanisms to acquire profits in the capital markets, targeting short-squeeze stocks can sometimes yield tremendous returns.
