Short squeeze setup

Bullish

Heavy short interest + the stock is rising + options flow is bullish. Short sellers are getting squeezed.

PRIMARY SOURCE

Asquith-Pathak-Ritter 2005

D'Avolio 2002

TYPICAL HORIZON

30-60 days

FACTORS USED

short_interestmomentumoptions

What it means

A lot of money is bet on this stock going down, but price is moving up and the options market is positioned bullishly. Short sellers borrowed shares to sell them, and now have to buy back at higher prices — their buying pushes the price higher still, triggering more forced covers.

Why it works

Forced buying is mechanical, not discretionary. When stock loans get recalled or margin requirements rise, shorts must cover regardless of fundamentals. Asquith-Pathak-Ritter 2005 document that the top-decile-shorted cohort in an uptrend earns material excess return over 30-60 days.

Watch out

Squeezes can be violent both ways. If the thesis behind the shorts is actually correct (fraud, deteriorating fundamentals), the squeeze gets covered over a few weeks then the stock resumes falling. Confirm the move has support beyond short-covering — check earnings, insider activity, options IV.

Live matches

50 tickers firing right now

TickerCompanySectorChangeScore

SWKSSkyworks SolutionsSemiconductors+2.66%89[43–95]ASANAsana Inc.Technology+5.81%89[43–95]ASTSAST SpaceMobileCommunication Services+3.78%87[41–95]LYFTLyft Inc.Technology+3.08%87[41–95]PENNPENN EntertainmentConsumer Cyclical+1.73%86[40–95]GLOBGlobant S.A.Technology+2.42%85[39–95]PAGSPagSeguro DigitalTechnology+3.61%84[38–95]NTAPNetApp Inc.Technology+0.56%83[37–95]WINGWingstop Inc.Consumer-0.16%82[36–95]ARMArm HoldingsSemiconductors+2.85%79[33–95]CLXClorox CompanyConsumer+2.62%78[32–95]RHIRobert HalfIndustrials+4.22%77[31–95]FOURShift4 PaymentsTechnology+1.14%77[31–95]PATHUiPath Inc.Technology+3.60%77[31–95]DUOLDuolingo Inc.Technology+1.05%76[30–95]TTDThe Trade DeskTechnology+5.30%76[30–95]QLYSQualys Inc.Technology+8.84%75[29–95]PINSPinterest Inc.Communication+2.36%75[29–95]CDWCDW CorporationTechnology+1.93%74[28–95]WDAYWorkday Inc.Technology+3.10%72[26–95]TENBTenable HoldingsTechnology+7.58%72[26–95]RPDRapid7 Inc.Technology+3.54%70[24–95]CUZCousins PropertiesReal Estate+1.98%68[22–95]RDDTReddit Inc.Communication+0.59%68[22–95]GTLBGitLab Inc.Technology+6.04%68[22–95]PAYCPaycom SoftwareTechnology+2.16%68[22–95]SNAPSnap Inc.Communication+2.53%67[21–95]POOLPool CorporationConsumer Cyclical+3.44%67[21–95]TEAMAtlassian CorporationTechnology+2.26%66[20–95]CRMSalesforce Inc.Technology+3.44%66[20–95]VRNSVaronis SystemsTechnology+2.13%66[20–95]ZSZscaler Inc.Technology+8.47%66[20–95]ANFAbercrombie & FitchConsumer Cyclical+1.96%66[20–95]CELHCelsius HoldingsConsumer Defensive-2.75%65[19–95]RMDResMed Inc.Healthcare+1.12%65[19–95]APAAPA CorporationEnergy+3.00%65[19–95]CTSHCognizant TechnologyTechnology+9.05%64[18–95]FICOFair Isaac CorporationTechnology+7.58%64[18–95]SSentinelOne Inc.Technology+4.03%64[18–95]OLLIOllie's Bargain OutletConsumer Cyclical+3.67%64[18–95]MTDRMatador ResourcesEnergy+0.78%63[17–95]LULULululemon AthleticaConsumer+0.94%63[17–95]ZBRAZebra TechnologiesTechnology+0.27%63[17–95]HSYHershey CompanyConsumer+2.54%63[17–95]FRSHFreshworks Inc.Technology+1.00%63[17–95]ZBHZimmer BiometHealthcare+1.72%62[16–95]LSCCLattice SemiconductorSemiconductors+2.53%62[16–95]MORNMorningstar Inc.Financial Services+4.13%62[16–95]UNPUnion PacificIndustrials+1.69%62[16–95]CHRDChord EnergyEnergy+0.79%62[16–95]

Disclaimer. Pattern matches are research signals, not investment advice. Past performance of an academic effect does not guarantee future returns. Forward-return tracking for Framler's own implementation begins 2026-05-16 after the calibration window closes.