TBLT - ToughBuilt (TBLT) Stock Surges 30% Higher on Short Squeeze Hopes
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ToughBuilt (NASDAQ:TBLT) stock was one of yesterday’s biggest movers, grabbing a tremendous amount of attention. However, today’s move in the producer of construction tools and accessories is showing even more interest in company. At the time of this writing, TBLT stock is up more than 30% for the day.
Cumulatively, ToughBuilt is now effectively doubling up over two trading days, providing an incredible move for those bullish on TBLT stock. As reported yesterday, short squeeze interest around the company appears to be a key driver here.
With high short interest and a low price per share, trading options can be an exhilarating way to make (or lose) tremendous amounts of money short-term. Given the cheap options available on TBLT stock, it’s clear that speculators taking the bullish side of the bet are coming out ahead.
Can this rally continue? Let’s dive into how much room shares may have left to run.
Is TBLT Stock a Buy After Doubling in Two Days?
It’s important to keep this rally in ToughBuilt in context. For ones, shares are still down more than 85% year-to-date (YTS). So, until now, short sellers have found a very profitable trade to jump on. Accordingly, those betting on either side of this trade will want to watch how short interest evolves in the coming days.
Any time there’s this dramatic of a move in such a short period of time, heightened volatility can persist for some time. Whether that’s a snap-back decline — or a continued momentum-driven rally — remains to be seen. However, for investors who like the slow-and-steady approach to wealth generation, TBLT stock is certainly one to steer clear of.
That said, for many traders, TBLT has been a fantastic stock to play this week. I expect to see more volatility on the horizon. Accordingly, investors may want to watch shares closely, even if ToughBuilt doesn’t end up in their portfolios.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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