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

ASANAsana Inc.Technology-3.47%92[26–95]SAMBoston Beer CompanyConsumer Defensive+0.97%91[25–95]ARESAres ManagementFinancial Services+0.84%89[23–95]CHHChoice HotelsConsumer Cyclical+0.19%88[22–95]RDDTReddit Inc.Communication Services-1.12%88[22–95]ANFAbercrombie & FitchConsumer Cyclical-0.33%88[22–95]HIMSHims & Hers HealthHealthcare-1.02%87[21–95]EPAMEPAM SystemsTechnology-5.30%87[21–95]NVCRNovoCure LimitedHealthcare-6.16%87[21–95]KVYOKlaviyoTechnology-2.96%86[20–95]PATHUiPath Inc.Technology-1.50%86[20–95]AKAMAkamai TechnologiesTechnology+1.86%85[19–95]UPSTUpstart HoldingsFinancial Services-0.61%85[19–95]LYFTLyft Inc.Technology+1.64%85[32–95]TROWT. Rowe Price GroupFinancial Services-1.14%85[19–95]RYANRyan SpecialtyFinancial Services-1.88%84[18–95]PVHPVH Corp.Consumer Cyclical-0.42%83[17–95]RDWRedwire CorporationIndustrials+2.93%83[17–95]OLLIOllie's Bargain OutletConsumer Cyclical+0.16%83[17–95]FDSFactSet ResearchFinancial Services-4.18%83[17–95]ARMArm HoldingsSemiconductors+5.18%81[15–95]SOFISoFi TechnologiesFinancial Services-0.44%81[15–95]TAPMolson Coors BeverageConsumer-0.67%80[14–95]CELHCelsius HoldingsConsumer Defensive-2.41%80[14–95]SNAPSnap Inc.Communication Services-1.24%80[14–95]PAGSPagSeguro DigitalTechnology+1.69%80[14–95]BIRKBirkenstock Holding plcConsumer Cyclical+1.09%80[14–95]RMDResMed Inc.Healthcare-1.02%80[14–95]CHPTChargePoint HoldingsIndustrials-8.92%79[13–95]NBIXNeurocrine BiosciencesHealthcare+1.76%78[12–95]SYFSynchrony FinancialFinancial Services+0.36%78[12–95]WAYWaystarHealthcare-2.13%78[12–95]PAYCPaycom SoftwareTechnology-2.85%77[11–95]GENGen Digital Inc.Technology-1.17%77[11–95]UTHRUnited TherapeuticsHealthcare-5.19%77[11–95]CNPCenterPoint EnergyUtilities+1.56%77[11–95]ORIOld Republic InternationalFinancial Services+1.52%76[10–95]ALRMAlarm.com HoldingsTechnology-0.33%76[10–95]BROSDutch BrosConsumer Cyclical+0.16%76[10–95]AIC3.ai Inc.Technology-0.90%76[10–95]BBAIBigBear.ai HoldingsTechnology-3.28%75[9–95]ZGZillow GroupTechnology-1.11%75[9–95]MCHPMicrochip TechnologySemiconductors+3.59%75[9–95]STNEStoneCo Ltd.Technology+1.38%75[9–95]MRNAModerna Inc.Healthcare+0.57%75[22–95]ALGNAlign TechnologyHealthcare-1.10%75[9–95]OLEDUniversal DisplayTechnology+3.85%74[8–95]ETSYEtsy Inc.Consumer Cyclical-0.10%74[8–95]CTSHCognizant TechnologyTechnology-3.89%73[7–95]BILLBill HoldingsTechnology-0.37%73[7–95]

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.