27% profit every 20 days?
This is what Nic Chahine averages with his option 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 gained steam in 2021 and have continued through 2022, with new traders looking for the next huge move.
High short interest and a high cost to borrow are among the common traits that could lead to a short squeeze.
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Here’s a look at the top five short squeeze candidates this week based on the Fintel short squeeze leaderboard and some other stocks to watch moving up the list.
Singing Machine Company (NASDAQ:MICS): Karaoke audio equipment company Singing Machine tops the short squeeze leaderboard for the second straight week.
The company has made frequent appearances in the top five over the last six months, including several weeks at the top. Data shows 25.1% of the float short, in line with last week’s figure. The cost to borrow of 119.5% is down slightly from last week’s 119.6%.
Madrigal Pharmaceuticals (NASDAQ: MDGL): The biopharmaceutical company ranks second on the list, moving up 12 places from last week. Data shows 24.3% of the float short and a cost to borrow of 54.7%.
Aerovate Therapeutics (NASDAQ:AVTE): The biopharmaceutical company ranks third on the short squeeze leaderboard, moving up one position from last week. Data shows 27.3% of the float short, in line with last week’s figure. The cost to borrow on shares is 7.3%, up from the 7% reported last week.
MoonLake Immunotherapeutics (NASDAQ:MLTX): The clinical stage biopharmaceutical company makes a return to the top five on the leaderboard, moving up two places from last week’s list. Data shows 16.4% of the float short and a cost to borrow of 25.7%.
Blue Apron Holdings (NYSE:APRN): The meal kit delivery company returns to the short squeeze leaderboard and ranks fifth for the week, moving up 16 places. Data shows 46.7% of the float short and a cost to borrow of 20.4%.
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Blue Apron was a popular short squeeze stock earlier in 2022 and now finds itself with a share price under $1 and with a potential delisting notice. The company could be considering a reverse split, which would take its price over $1 and also lower the float and available shares.
Related Link: Top 10 Highest Short Interest Stocks And 10 With Highest Cost To Borrow
Stocks to Watch: Outside of the top five short squeeze candidates, there are several stocks making notable moves for investors to consider.
Camber Energy (AMEX:CEI) ranks ninth on the leaderboard, moving up 2,045 places in one of the biggest jumps for the week. Data shows 220.5% of the float short and a cost to borrow of 5.1%. The stock was previously a popular short squeeze candidate and recently saw shares jump on a reverse split.
HEXO Corporation (NASDAQ:HEXO) ranks thirteenth on the leaderboard, moving up 1,761 places for we week. Data shows 61.9% of the float short and a cost to borrow of 13.2%.
Applovin Corporation (NASDAQ:APP) ranks 88th on the leaderboard, moving up seven places. The stock has the highest short interest at 356.8% on the leaderboard. The cost to borrow on shares is 0.5%, a number worth watching for investors to see if the stock continues to move up with high short interest.
Remark Media (NASDAQ:MARK) ranks just outside of the top five candidates in sixth place. The stock has 103.8% of its float short, one of the highest figures for the week. The cost to borrow on shares is 14.3%.
The short squeeze stocks to watch list is published weekly. Benzinga also recently introduced its Moneymaker Index, which provides five stocks seeing increased interest from investors.
Read Next: The 10 Most Shorted ETFs, Which Sectors Saw Short Interest Increase
Photo courtesy of Blue Apron.
27% profit every 20 days?
This is what Nic Chahine averages with his option 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.