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

MBLYMobileye GlobalSemiconductors+2.88%92[33–95]OPENOpendoor TechnologiesTechnology+0.64%91[32–95]KSSKohl's CorporationConsumer Cyclical+0.52%89[30–95]IPInternational PaperBasic Materials+2.20%89[30–95]WENThe Wendy's CompanyConsumer Cyclical+1.90%88[29–95]GTMZoomInfo TechnologiesTechnology+0.24%88[29–95]CHHChoice HotelsConsumer Cyclical+1.23%88[29–95]GOLDBarrick GoldBasic Materials+11.21%87[28–95]NTLAIntellia TherapeuticsHealthcare+0.47%87[28–95]RDDTReddit Inc.Communication Services-0.98%86[27–95]AAPAdvance Auto PartsConsumer Cyclical+3.42%86[27–95]LUNRIntuitive MachinesIndustrials+0.75%86[27–95]RYANRyan SpecialtyFinancial Services-1.02%85[26–95]HIMSHims & Hers HealthHealthcare-0.40%85[26–95]BEAMBeam TherapeuticsHealthcare+0.68%84[25–95]CLFCleveland-CliffsBasic Materials+1.79%84[25–95]RDWRedwire CorporationIndustrials+1.54%84[25–95]EEFTEuronet WorldwideTechnology+0.72%84[25–95]GAPGap Inc.Consumer Cyclical+0.49%84[25–95]RIOTRiot PlatformsTechnology+3.12%83[24–95]ARMArm HoldingsSemiconductors+3.92%82[23–95]CHTRCharter CommunicationsCommunication Services+0.40%82[23–95]SMCISuper Micro ComputerTechnology+4.54%82[23–95]OLLIOllie's Bargain OutletConsumer Cyclical+3.90%81[22–95]HPQHP Inc.Technology+2.22%80[21–95]CVNACarvana Co.Consumer Cyclical+1.58%78[19–95]SEDGSolarEdge TechnologiesTechnology+1.18%78[19–95]BOOTBoot Barn HoldingsConsumer Cyclical+4.70%77[18–95]SAROStandardAeroIndustrials+0.69%76[17–95]IONQIonQ Inc.Technology+1.28%76[17–95]AALAmerican AirlinesIndustrials+1.23%76[17–95]SWKSSkyworks SolutionsSemiconductors+3.52%76[17–95]GFSGlobalFoundriesSemiconductors+1.53%76[17–95]MCHPMicrochip TechnologySemiconductors+1.45%75[16–95]PLUGPlug PowerIndustrials+2.84%75[16–95]HIWHighwoods PropertiesReal Estate+0.58%74[15–95]DOCUDocuSign Inc.Technology+3.70%74[15–95]RFRegions FinancialFinancial Services-0.07%73[14–95]WDCWestern DigitalTechnology+5.86%72[13–95]RKLBRocket Lab USAIndustrials+0.71%72[13–95]WWayfair Inc.Consumer Cyclical+2.53%70[11–95]RBRKRubrikTechnology+1.66%70[11–95]GTLBGitLab Inc.Technology+1.05%69[10–95]CHRDChord EnergyEnergy-1.09%69[10–95]ONON SemiconductorSemiconductors+0.99%68[9–95]SMTCSemtech CorporationSemiconductors+9.22%67[8–95]BBWIBath & Body WorksConsumer Cyclical+2.85%67[8–95]ELFe.l.f. BeautyConsumer Defensive+2.10%67[8–95]EMNEastman ChemicalBasic Materials+0.59%66[7–95]CRUSCirrus LogicSemiconductors+0.07%65[6–95]

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.