Short Squeeze

A short squeeze can occur when the shares short as a percentage of float exceeds 10%, and the days to cover is greater than 3. A catalyst event causes a rapid increase in the price of a stock that occurs when there is a lack of supply and an excess of demand for the stock. As a result, short sellers have to buy-to-cover their short positions as the pressure to sell mounts and they are squeezed out of their short positions, usually for a loss.

A popular free tool to look up the short interest and days to cover in a stock is the Nasdaq Short Interest site at

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Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on unless specifically stated in the article. Owner of Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.