High-Yield Short Squeeze Plays

Investors in dividend paying stocks might want to take a different approach to looking for stocks. Many stock traders look for short squeeze plays. These are stocks that have a large number of shares that have been shorted. Traders are hoping that on any good news, the short sellers will jump at buying in their shares, driving up the stock's price. Short interest in a stock could indicate that the stock is well positioned for a short squeeze in the event a positive catalyst occur. A short squeeze takes place when a heavily shorted stock is quickly bought back in by the short-sellers in order to cover their bearish positions, driving the price of the stock up sharply. The most common measurement for short interest is the short ratio, which measures the numbers of days it would take the short-sellers to cover their positions based on recent average daily volume.... Read more