The Plight of High Short Interest Stocks — and How to Play Them

[] Today's market commentary from TradingPub is here! To view this email as a web page, go [here.]( To view this email as a web page, go [here.]( [] [] [] Join Lance at 10 a.m. ET on Friday to learn his Quick Flip secret — [and get a free trade!]( The Plight of High Short Interest Stocks — and How to Play Them Well, that didn’t take long. This seasonality/liquidity problem continues to accelerate across the market. As I’ve noted, the zombie stocks — [highlighted Tuesday]( — are under pressure. Today, I want to walk you through a few names and highlight what happens when negative momentum combines with high short interest. Don’t worry. I’ll walk you through all the necessary terminology. When you’re ready, you’ll learn the top names to short when momentum goes negative… and the right way to target these stocks over the duration. High Short Interest Stocks Defined High short interest stocks are publicly traded companies with a significant portion of their outstanding shares held by short sellers. Short sellers are investors who have borrowed and sold shares in the hope of profiting from a future stock price decline. When investors or traders "short" a stock, they bet its value will decrease. They do so by borrowing a stock and selling it into the open market. When the stock decreases, they can buy it back and pocket the difference between their sale and their repurchase price. The term "high short interest" signifies that a notable percentage of a company's shares have been sold short. The reasons behind high short interest can vary, including concerns about a company's financial health, overvaluation or anticipation of negative news. High short interest stocks often attract the attention of traders and investors because they can result in significant price fluctuations. If positive news or developments emerge, it may trigger a "short squeeze," forcing short sellers to buy back shares to cover their positions, which can drive up the stock's price. Conversely, if negative information surfaces, it can exacerbate the stock's decline as short sellers profit from the fall in price. Negative Momentum and High Short Interest Negative momentum events typically parallel a liquidity problem in the market. We witness declines in collateral quality, access to credit or a cash crunch. So, when momentum flips negative, we tend to see the stocks with high short interest take a hit. There isn’t enough cheap money flooding around the market to buy and push these stocks up anymore. So what does that lead to? A resumption of short activity, and movements lower. Take a look at the list of stocks at HighShortInterest.com. [] Shares of Fisker Inc. (NYSE: FSR) were flat on Thursday. But down the list — other highly shorted stocks took a hit. Beyond Meat Inc. (Nasdaq: BYND) is down 10% this week. Carvana Co. (NYSE: CVNA) fell 5.5% on Thursday. And C3.ai (NYSE: AI) dumped another 12% today after a bad earnings report. Negative momentum helped drive these sell-offs. And what’s nice about these stocks — especially as momentum turns negative — is that ample opportunity exists to speculate. How Would I Short These Stocks? The moment that momentum turns negative, traders should become smart speculators. Consider the very prospect of buying an in-the-money put on some of these names. For example, traders could have bought the Sept. 8 expiration, $11.50 strike put in BYND yesterday when momentum turned negative. The option traded for about $0.15. The opening price on this high short-interest stock’s in-the-money contract traded for $0.61 after the open Thursday morning, and hovered near $0.50 at lunch time. That’d be a more than 200% return simply by timing the market and buying this contract, and a basket of others. Timing the market is difficult, but negative momentum readings give us the conviction to speculate on the cheap and look for big returns on the backside. There will be plenty more opportunities to trade these same stocks to the upside when we see an improvement in market conditions. [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. [] [] _________________________________________________ [] 6 straight wins… See the strategy behind it this Friday — and Get a Free Trade Over the past month, Lance Ippolito’s new Quick Flip strategy has produced SIX double-digit winners in a row. The returns you see below are based on a $2,500 starting stake in each… [] And to celebrate, he’s holding a one-time class at 10 a.m. ET on Friday Sept. 8... And giving away [his No. 1 Quick Flip setup]( heading into the weekend… absolutely FREE! Granted, we cannot promise future returns or against losses… But this should give you plenty of time to get in on the action with this setup if you choose. Either way, you can get a sneak peek behind Lance’s new Quick Flip strategy. [Just RSVP Here to Save Your Seat!]( [] From 5/19/22 through 8/29/23 on closed trade signals, the average win rate is 74.5%. The average return per position (winners and losers) is 9.35% and over a 31.78%.average winner with a 6 day average hold time. Past results are no guarantee of future results and you can lose money. [] _______________________________________________ [] Market Momentum is RED Momentum is red. Markets turned negative Wednesday after another nasty sell-off battered the S&P 500 and the Russell 2000. I’m taking a step back from this market — and looking toward the long term. Tomorrow, I’ll release my latest long-term value stock for investors at [Tactical Wealth Investor.]( *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. [] ___________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the TradingPub channel and you’re done: [9_jjnFuAvno0MjNh]( See you there! Garrett [] [] [] Join Lance at 10 a.m. ET on Friday to learn his Quick Flip secret — [and get a free trade!]( The Plight of High Short Interest Stocks — and How to Play Them Well, that didn’t take long. This seasonality/liquidity problem continues to accelerate across the market. As I’ve noted, the zombie stocks — [highlighted Tuesday]( — are under pressure. Today, I want to walk you through a few names and highlight what happens when negative momentum combines with high short interest. Don’t worry. I’ll walk you through all the necessary terminology. When you’re ready, you’ll learn the top names to short when momentum goes negative… and the right way to target these stocks over the duration. High Short Interest Stocks Defined High short interest stocks are publicly traded companies with a significant portion of their outstanding shares held by short sellers. Short sellers are investors who have borrowed and sold shares in the hope of profiting from a future stock price decline. When investors or traders "short" a stock, they bet its value will decrease. They do so by borrowing a stock and selling it into the open market. When the stock decreases, they can buy it back and pocket the difference between their sale and their repurchase price. The term "high short interest" signifies that a notable percentage of a company's shares have been sold short. The reasons behind high short interest can vary, including concerns about a company's financial health, overvaluation or anticipation of negative news. High short interest stocks often attract the attention of traders and investors because they can result in significant price fluctuations. If positive news or developments emerge, it may trigger a "short squeeze," forcing short sellers to buy back shares to cover their positions, which can drive up the stock's price. Conversely, if negative information surfaces, it can exacerbate the stock's decline as short sellers profit from the fall in price. Negative Momentum and High Short Interest Negative momentum events typically parallel a liquidity problem in the market. We witness declines in collateral quality, access to credit or a cash crunch. So, when momentum flips negative, we tend to see the stocks with high short interest take a hit. There isn’t enough cheap money flooding around the market to buy and push these stocks up anymore. So what does that lead to? A resumption of short activity, and movements lower. Take a look at the list of stocks at HighShortInterest.com. [] Shares of Fisker Inc. (NYSE: FSR) were flat on Thursday. But down the list — other highly shorted stocks took a hit. Beyond Meat Inc. (Nasdaq: BYND) is down 10% this week. Carvana Co. (NYSE: CVNA) fell 5.5% on Thursday. And C3.ai (NYSE: AI) dumped another 12% today after a bad earnings report. Negative momentum helped drive these sell-offs. And what’s nice about these stocks — especially as momentum turns negative — is that ample opportunity exists to speculate. How Would I Short These Stocks? The moment that momentum turns negative, traders should become smart speculators. Consider the very prospect of buying an in-the-money put on some of these names. For example, traders could have bought the Sept. 8 expiration, $11.50 strike put in BYND yesterday when momentum turned negative. The option traded for about $0.15. The opening price on this high short-interest stock’s in-the-money contract traded for $0.61 after the open Thursday morning, and hovered near $0.50 at lunch time. That’d be a more than 200% return simply by timing the market and buying this contract, and a basket of others. Timing the market is difficult, but negative momentum readings give us the conviction to speculate on the cheap and look for big returns on the backside. There will be plenty more opportunities to trade these same stocks to the upside when we see an improvement in market conditions. [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. [] [] _________________________________________________ [] 6 straight wins… See the strategy behind it this Friday — and Get a Free Trade Over the past month, Lance Ippolito’s new Quick Flip strategy has produced SIX double-digit winners in a row. The returns you see below are based on a $2,500 starting stake in each… [] And to celebrate, he’s holding a one-time class at 10 a.m. ET on Friday Sept. 8... And giving away [his No. 1 Quick Flip setup]( heading into the weekend… absolutely FREE! Granted, we cannot promise future returns or against losses… But this should give you plenty of time to get in on the action with this setup if you choose. Either way, you can get a sneak peek behind Lance’s new Quick Flip strategy. [Just RSVP Here to Save Your Seat!]( [] From 5/19/22 through 8/29/23 on closed trade signals, the average win rate is 74.5%. The average return per position (winners and losers) is 9.35% and over a 31.78%.average winner with a 6 day average hold time. Past results are no guarantee of future results and you can lose money. [] _______________________________________________ [] Market Momentum is RED Momentum is red. Markets turned negative Wednesday after another nasty sell-off battered the S&P 500 and the Russell 2000. I’m taking a step back from this market — and looking toward the long term. Tomorrow, I’ll release my latest long-term value stock for investors at [Tactical Wealth Investor.]( *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. [] ___________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the TradingPub channel and you’re done: [9_jjnFuAvno0MjNh]( See you there! Garrett [] A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States [] A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States