The Three Top Short Squeeze Candidates For This Week

Back in May we outlined SPRT as the top short squeeze stock when it was trading at only $2.68. 














We were largely ignored and censored on the WSB Reddit page because SPRT didn't meet market cap requirements. Well now SPRT is popular AFTER people after put their money in at $50 and are losing as the stock pulled back to $21 after its major squeeze. You win on the stock market by being the FIRST one into the meme stocks, not the last. Here are the top three stocks to look for a major squeeze on this week:

#1 IVERIC bio, Inc. (ISEE)

ISEE moved up on the mixed data and negative market reaction on APLS, a rival eye medication. Shorts are in big trouble here as the stock moved up 62% on Friday and spiked up more after hours. They may not have been prepared for such a poor result on APLS and are therefore caught in a bad short with the stock hitting a new 52-week high and sitting at more than double the price it was a few months ago. Yahoo Finance data shows that there 10.8 million shares short on a float of 78.4 million, for a short interest percentage of 13.8%. With analysts upgrading the stock to the $20's, this is not the type of news that's going to easily go away and shorts can cover on a pullback. There is a very good chance that they will be squeezed out of their position and forced to cover at a big loss. 

 
























#2 Forte Biosciences, Inc. (FBRX):

FBRX has the exact opposite issue of ISEE. Shorts have actually won big on this stock as it has tanked massively from $30 to just over $4 after its major pipeline candidate failed in its Phase 2 trial. Yahoo Finance data shows a short interest of 1.7 million on 10.9 million shares outstanding for a short interest of 15.8%. As the stock has bottomed out, shorts may decide to cover and take their massive gains. Someone who shorted at $30 doesn't really care that much if they cover at $4 or $5 or $6.  This is a difference between taking 80% and 87% gains. What they are looking for is volume for which to cover. That volume has steadily been dissipating so for any shorts that haven't yet covered, watch for them to take their profits. We predict a bounce up to the $5 to $6 range this week. There is a fair amount of open interest on $5 calls and puts, so market makers that write those options have a strong incentive to have the stock close at $5 this week to eliminate any payouts on the long and the short side of those options. 


























#3 Ontrak, Inc. (OTRK):

This would not be the first time we called a squeeze on OTRK. On March 4, we announced it as a top short squeeze candidate. That was the day it closed at a low of $24.39. In two weeks it was trading as high as $39. Great money can be made on stock and call options if a similar move was to occur again.  

This is OTRK's share statistics according to Yahoo Finance:















There are 1.75 million shares short on a float of 9.5 million, for a short interest % of 18%. This is comparable to other short squeeze meme darlings like AMC, GME and MVIS. OTRK recently tanked on bad news. While it has been recovering, the recovery has been slowed by the insider selling of former CEO but current Chairman Terren Peizer. He has been selling a few thousand shares each day since the stock tanked in mid-August but still owns over 9 million shares. People think this is bad news, so the stock has had problems rebounding strongly. This is where things get interesting and we think it's actually good news that he's selling. If he wants out, he obviously wants out at the highest price possible. It would be in Peizer's best interest if OTRK went on a run like SPRT's. 

We will say this as generally as possible without tying any specific actions to any specific people. People with a vested interest in seeing OTRK move up could infiltrate WSB Reddit or "convince" (wink, wink) top contributors in the group to push the OTRK short squeeze narrative. Giving award stickers to posters on Reddit doesn't cost a lot of money compared to the money that can be made on a short squeeze by those who own a large position. Keep a close eye on OTRK. It will squeeze sooner rather than later and don't be surprised to see it as a WSB darling like SPRT is very soon. Take it from us, who predicted SPRT would be a top short squeeze candidate when it was trading near its 52-week lows of $2.68, not near its highs. 

When we first alerted about OTRK on August 29, it had a spike into the $13's from the $11's and a large September call option position was purchased. Keep a close eye on it for larger spikes in the next couple of weeks as there is a gap to fill at $20. 

Comments

Post a Comment

Popular posts from this blog

The Two Best Biotech Short Squeeze Candidates And The Next Carvana

Image
With the market having recovered most of its recent drop to be near all-time highs once again, shorts have been destroyed and are in a desperate spot. Heavily shorted stocks like B. Riley Financial, Inc. (RILY), Globe Life Inc. (GL) and Carvana Co. (CVNA) have been on absolute tears. We have written about CVNA before , as well as the impact of CVNA's move on Root , Inc. (ROOT). When a stock is squeezing like CVNA, a related stock like ROOT will follow suit. Shorts are often shorting multiple related stocks. Most don't even hide it with Kerrisdale openly bragging about its poor track record. GL was another one that was attacked by shorts which we talked about as a gamma squeeze candidate that has worked out very well over the past three weeks.  In this market of short squeezes, we have identified two excellent biotech short squeeze candidates, ImmunityBio, Inc. (IBRX) and Soleno Therapeutics, Inc. (SLNO). IBRX is starting up the production and sale of its cancer drug ANKT...
Read more

The Best Short Squeeze Candidate You'll Find Right Now. Shorts Are Truly Trapped.

Image
Vroom, Inc. Common Stock (VRM) recently re-listed after going through bankruptcy proceedings. This is truly the greatest short squeeze candidate you'll find right now as it is a highly shorted, low float and low volume play. Shorts are truly trapped. Stats from Yahoo Finance : There are 240,000 shares short on the stock with a float of only 427,000. Unlike so many other stocks with "small" floats like this but trade millions of shares a day, VRM has averaged only 25,000 shares traded per day since re-listing. That's a sign that the trading is real and not being manipulated by bots and market makers. Shorts likely shorted that heavily thinking that bankruptcy would result in a de-listing and the stock being worthless. But that clearly didn't happen. Now they are stuck with a short position on a stock that hardly has any volume and it's impossible to exit without significantly moving VRM upward. This is one of those rare times where retail buying can actually ca...
Read more

Globe Life: Gamma Squeeze Heading Into Earnings

Image
Last week Globe Life (GL) tanked on some half-assed short report by someone called Fuzzy Panda Research. This was a blatant attempt at manipulation and it worked. Unusual Whales reported that large put option positions were being opened, including a $500,000 position in May $80 puts that was closed five hours later for $5 million. It looks like a coordinated attack with a short report that wasn't particularly strong between buddies on Wall Street. That leaves retail put option holders holding the bag as thousands of puts worth of open interest at strikes below $60 are now set to expire worthless.  The more interesting play will be the gamma squeeze potential heading into earnings. GL will be reporting its Q1 after close on Monday the 22nd. Despite a very weak market this week, GL's upward momentum has been accelerating. Since closing at its low of $49.17 on April 11, it has risen 28% to $63, with Tuesday and Wednesday (so far) increasing in excess of 5%. This creates a problem...
Read more