Two Red-Hot Short Squeeze Stocks To Sell Immediately

I’m here to tell you, the retail investor-driven short squeeze trade is alive and well – still the hottest trade on the market.

So, yes, the short squeeze can still be worth your while.

But two of the market’s biggest “headline” short squeezes are finished. They’re done, completely out of gas, and ready for a big reversal. And I’m concerned a lot of people who are long on these stocks, expecting another big pop, could get crushed.

So, whether you’re trading these with options or holding them, here’s why this morning is the time to take your quadruple-digit profits on these and head for the exits…

Image Source: Unsplash

These Legendary Short Squeeze Plays Are Played Out

GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC) helped make “short squeeze” a household word in 2021. Even folks with no money at all in the markets are familiar with these two.

They’ve routinely grabbed headlines as “meme stocks,” and, more importantly, have delivered 1,700% and 3,200% profits, respectively, this year for regular retail investors who hung in tough and targeted the huge short positions Wall Street had on these.

None of this is lost on corporate leadership. GameStop has been executing on a successful turnaround plan that should get it out of the basement for good, and AMC is finally getting moviegoers in seats. But in both boardrooms, they’ve also leveraged their newfound fame and newly juiced-up stock prices in some interesting ways.

Just this past week, GameStop – whose balance sheet is starting to look good – executed a $1.12 billion stock offering, and earlier this month, AMC completed a $587 million equity offering, selling around 11.5 million shares at an average price of $50.85.

Enthusiastic investors went wild, despite being diluted six ways from Tuesday, sending both companies’ stocks rocketing; that’s something we’re seeing more and more of in these meme stocks.

1 2
View single page >> |

Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Harry Sinclair 2 months ago Member's comment

Your thesis to sell is not enough short interest... That thesis is invalid because there is a hell of a lot of naked shorts out there y’all don’t talk about. I can’t even imagine how much naked shorts there are.

Alpha Stockman 2 months ago Member's comment

Totally disagree.