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

EPAMEPAM SystemsTechnology+1.26%89[40–95]PATHUiPath Inc.Technology+9.31%88[39–95]ASANAsana Inc.Technology+9.79%88[39–95]WENThe Wendy's CompanyConsumer Cyclical-0.12%87[38–95]SMCISuper Micro ComputerTechnology+4.12%87[38–95]NCLHNorwegian Cruise LineConsumer Cyclical+3.33%87[38–95]FOURShift4 PaymentsTechnology+9.29%87[38–95]MGMMGM Resorts InternationalConsumer Cyclical+0.20%86[37–95]OWLBlue Owl CapitalFinancial Services+5.59%85[36–95]AKAMAkamai TechnologiesTechnology+2.04%85[36–95]EATBrinker InternationalConsumer Cyclical-2.96%85[36–95]LUNRIntuitive MachinesIndustrials+3.60%84[35–95]CVNACarvana Co.Consumer Cyclical+1.68%83[34–95]ASTSAST SpaceMobileCommunication Services-3.75%83[34–95]PLUGPlug PowerIndustrials+0.44%83[34–95]NVCRNovoCure LimitedHealthcare-1.19%83[34–95]RDWRedwire CorporationIndustrials-2.15%82[33–95]BILLBill HoldingsTechnology+5.36%82[33–95]RGTIRigetti ComputingTechnology+1.09%82[33–95]CELHCelsius HoldingsConsumer Defensive+4.20%82[33–95]TENBTenable HoldingsTechnology+8.19%82[33–95]FICOFair Isaac CorporationTechnology+6.37%81[32–95]CAGConagra BrandsConsumer Defensive+2.87%81[32–95]LVSLas Vegas SandsConsumer Cyclical+0.20%81[32–95]MRNAModerna Inc.Healthcare-0.03%80[31–95]ARESAres ManagementFinancial Services+4.99%80[31–95]TEMTempus AIHealthcare-0.59%79[30–95]DPZDomino's PizzaConsumer-0.80%79[30–95]ARMArm HoldingsSemiconductors+2.49%79[30–95]DVADaVita Inc.Healthcare-1.28%79[30–95]PENNPENN EntertainmentConsumer Cyclical-1.67%78[29–95]TTDThe Trade DeskTechnology+7.93%78[29–95]HPQHP Inc.Technology+6.90%78[29–95]CHHChoice HotelsConsumer Cyclical-0.92%78[29–95]IONQIonQ Inc.Technology-0.49%77[28–95]NTAPNetApp Inc.Technology+1.46%77[28–95]UUnity SoftwareTechnology+2.83%76[27–95]CHPTChargePoint HoldingsIndustrials-3.28%76[27–95]DKNGDraftKings Inc.Consumer-0.35%76[27–95]PCVXVaxcyte Inc.Healthcare-1.32%75[26–95]RVTYRevvity Inc.Healthcare-0.32%75[26–95]SYFSynchrony FinancialFinancial Services+0.84%74[25–95]DRIDarden RestaurantsConsumer Cyclical-1.84%74[25–95]MEIMethode ElectronicsIndustrials-1.42%74[25–95]BROSDutch BrosConsumer Cyclical+0.22%74[25–95]FUBOfuboTV Inc.Communication Services+1.03%74[25–95]RFRegions FinancialFinancial Services+0.19%73[24–95]BEBloom EnergyIndustrials-0.40%73[24–95]CRLCharles River LaboratoriesHealthcare-1.09%72[23–95]GOLDBarrick GoldBasic Materials-1.95%72[23–95]

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.