For the zillionth time, a company (like Incyte) with a large convertible debt component to its financing is going to have a lot of stock sold short against that debt. Strategies for managing these hedges are not straightforward. But the main things to remember are that the shorts which are part of a hedge neither reflect investor pessimism nor are subject to being squeezed.
jacosa, i know what you are saying and understand, there has been approximately 17 million shares short the better average of a year or two....and i feel along with you that good portion of those are tied to the debt, but is the explosion higher of more shorts, those tied to convertible debt doubling down or new shorts all together?????
maddi, was screaming the shorts are covering and incyte will rocket, incyte went up nearly 20% and then dropped nearly 10%...i told him do not bank on short covering or a short squeeze, besides management does not want this as they hate going up huge (50%) type moves and then falling right back.. as for the short interest numbers, they are taken on the 15th which is after the big move the day AFTER EARNINGS.