Day traders are in a feeding frenzy for stocks with high short interest ever since their coordinated buying ignited a short squeeze in GameStop (GME, $325.00). (Stock prices as of Jan. 29.)
But forget about GameStop for a second. Day traders can't get their fill of any stock with high short interest.
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Ever since the bros of r/WallStreetBets (WSB) began a campaign to crush hedge funds shorting GME by setting off a short squeeze (while making hefty paper profits to boot), every "short stock" with high short interest has become chum.
That's why there are so many stocks with preposterous gains in such relatively short times. Shares in troubled video game retailer GameStop have almost quintupled in the past five days, which is crazy enough, but that's nothing. Get this: They're up 11,100% since bottoming out in early April.
AMC Entertainment (AMC, $13.26), the national theater chain reeling from the pandemic, has gone on its own tear thanks to heavy short interest, with gains of 290% over the past five trading sessions. Bed Bath & Beyond (BBBY, $35.33), Ligand Pharmaceuticals (LGND, $185.35) and iRobot (IRBT, $120.10) are just three of many stocks with high short interest exhibiting wild volatility.
Below are the 25 stocks with the highest short interest, or percentage of shares outstanding sold short, on the major exchanges.
But be forewarned that this list is for informational purposes only. Going long on a stock with high short interest simply to get rich off the panic-buying of short sellers is exceedingly dangerous – just like continuing to short stocks with high short interest.
In either case, risks greatly outweigh the rewards.