27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Potential short squeeze plays have gained steam in 2021 with new retail traders looking for the next GameStop Corp (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC), two stocks that attracted strong interest and saw shares spike.
A short squeeze can occur when a heavily shorted stock rises in value instead of falling. Short sellers could be looking to close out their position and can face a loss if they have to buy back the shares they initially borrowed at a higher price.
Fintel Data: Data from Fintel, which requires a subscription, provides a look at some of the top shorted stocks and data that shows how likely a short squeeze is to happen.
Here is a look at Fintel’s top five short squeeze candidates for the week of Sept. 27.
1. Aterian: Consumer products company Aterian Inc (NASDAQ:ATER) tops the list this week after being the No. 2 candidate last week. Short interest remains at 37% of the float, according to Fintel. The borrow fee on shares is 88%, down from last week’s 100%. Shares of ATER hit $19.10 on Sept. 13 before falling back down to $11. ATER shares climbed on Friday back over the $13.50 mark. Shares of ATER traded at $3.04 back in August before starting to squeeze higher.
2. Marin Software: Cloud-based advertising company Marin Software (NASDAQ:MRIN) places second on the list. Fintel reports short interest as a percentage of float at 9.2% and a borrow fee of 49%. These are among the lower rates in recent top five lists. Marin makes its way on the short squeeze leaderboard thanks to a float of just 13 million shares, “which is low enough for a meme-stock army or a hedge fund to crack,” Fintel says.
Related Link: Exclusive: Katapult CEO Talks Growing Ecommerce, Strength From Stimulus And Affirm Partnership
3. Vinco Ventures: Last week’s leader Vinco Ventures (NASDAQ:BBIG) comes in at third for the week. Short interest of float is 25% and the company has a borrow fee of 25%. BBIG shares hit a high of $12.49 on Sept. 8 before steadily declining to under $6.
4. Camber Energy: Oil and natural gas company Camber Energy (AMEX:CEI) has seen shares rise with increased retail interest. The company comes in fourth on the Fintel short squeeze leaderboard with short interest of 23% of the float and a borrow fee of 13.7%. While the percentage doesn’t jump out, the increase in short interest from 6.1 million shares at the end of August to 24.4 million shares on Sept. 15 marked a jump of 298%. Short sellers appear to be circling this name after seeing shares rise from 33 cents a share to $2.29 in less than a month.
5. Katapult Holdings: No stranger to the short squeeze leaderboard is Katapult Holdings (NASDAQ:KPLT). The buy now, pay later company went public via SPAC in 2021 and has seen shares rise on interest in the sector and being a potential short squeeze candidate. The company has a short percentage of float of 17.7% and a borrow fee of 56.5%. Both these figures are up from last week and Fintel notes the borrow fee is among the highest the company has seen in weeks.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!