HOT - Short Sellers Run Scared As Meme Stocks Roar: Why High Short Interest Stocks Keep Ripping | Benzinga
A multitude of stocks with high short interest ripped higher on Monday and continue to rally on Tuesday. The initial moves higher appear to be due to retail traders rushing into heavily shorted names, but the continued momentum may have more to do with short covering. Here’s what you need to know.
What To Know: The rally in heavily shorted stocks this week got started when Keith Gill, best known as Roaring Kitty on YouTube and X or "DeepF***ingValue" on Reddit, posted a simple meme of a person leaning forward in a chair after being silent on social media for three years.
GameStop Corp (NYSE:GME) was the first stock to move, but it didn’t take long before retail traders began targeting other stocks with high short interest.
If a stock has high short interest, it means many people are betting that it’s overvalued and poised to trade lower as a result. In order to short a stock, an investor must borrow shares from a brokerage and sell those shares in the open market. The goal is to then buy those ...