E GameStopped For Now

The GameStop frenzy which caused the markets to end January lower than when the month started has ended, despite its having left Robinhood's C-suite team frantically looking to raise cash. Yesterday the S&P 500 closed at 3,774, up 60 pts., the Nasdaq Composite closed at 13,403, up 332 pts. and the Dow closed at 30,212, up 229 pts. Currently morning futures for all 3 indices are trading in the green.

Overwatch, Games, Gamescom, Cologne

In a TalkMarkets exclusive titled, High Short Interest Stocks: What Are They, Who Are They, And How To "Play" ThemLorimer Wilson  explains in layman's terms what it means to short a stock and how to do it. He also, explains what is a "short squeeze" and gives a current list of "short" stock targets in light of the GameStop (GME) frenzy.

"Why Do Speculators 'Short' Stocks?

When someone shorts a stock, they’re trying to sell something that they don’t actually own because they think they can make money later by buying it back at a lower price.

How Do You Short A Stock?

If you believe a stock’s value will increase over time, you want to buy it and hold it, which is known as taking a “long” position but, if you anticipate that a stock’s price will decrease, you could take a “short” position. To do this, you would:

  • borrow shares of the stock and sell them to another investor (even though you don’t own them).
    • If you can sell the stock to someone else for a higher price than what it will cost you to purchase the shares from the original owner to cover your borrowing, you will profit from short-selling.
    • If the stock’s price keeps rising, though, the short seller will have to rebuy the borrowed shares at a higher price than they sold the shares for.

What’s a Short Squeeze?

A short squeeze is when there is strong demand for a stock that also has a lot of short-sellers that forces short sellers to buy the stock in an attempt to cut their losses. When this happens - when both the long buyers and the short sellers are buying - it drives the price up even further."

If that short FinEd lesson has not quaffed your thirst for shorting here's Lorimer Wilson's list of current quenchers:

"A percentage of short-sales to total shares available for trading of over 30% is considered outrageously high and below is a list of such stocks that with their % appreciation during the month of January in brackets:

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