VIR - How Risky Are These Heavily Shorted COVID Stocks?
Short sellers have their eyes peeled on Vir Biotechnology (NASDAQ: VIR) and Sorrento Therapeutics (NASDAQ: SRNE) . Short positions make up 22% and 26% of their float, respectively. Float refers to shares available for the general public to trade.
The immediate risk lies in the fact that so many investors are betting these stocks will decline. Another concern may be the possibility of a short squeeze -- followed by a big drop in share price. But the biggest risk of all for Vir and Sorrento is that their COVID-19 candidates are still in clinical trials.
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How Risky Are These Heavily Shorted COVID Stocks?