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

CHHChoice HotelsConsumer Cyclical+0.04%91[41–95]SEDGSolarEdge TechnologiesTechnology-5.21%90[40–95]SAMBoston Beer CompanyConsumer Defensive+2.04%90[40–95]CPBCampbell SoupConsumer Defensive-0.17%90[40–95]DUOLDuolingo Inc.Technology+0.68%90[40–95]WENThe Wendy's CompanyConsumer Cyclical-1.34%89[39–95]SPCEVirgin GalacticIndustrials-4.05%89[39–95]SRPTSarepta TherapeuticsHealthcare-2.58%89[39–95]PLUGPlug PowerIndustrials-2.22%88[38–95]EPAMEPAM SystemsTechnology-0.57%87[37–95]FSLRFirst Solar Inc.Energy-3.75%87[37–95]PATHUiPath Inc.Technology+0.89%87[37–95]FOURShift4 PaymentsTechnology+1.55%86[36–95]OWLBlue Owl CapitalFinancial Services-3.14%86[36–95]HIMSHims & Hers HealthHealthcare+2.48%86[36–95]UPSTUpstart HoldingsFinancial Services-5.69%86[36–95]APAAPA CorporationEnergy+2.16%85[35–95]TEMTempus AIHealthcare+8.82%84[34–95]RAREUltragenyx PharmaceuticalHealthcare-3.51%84[34–95]PSKYParamount SkydanceCommunication Services-2.92%83[33–95]WINGWingstop Inc.Consumer-5.72%83[33–95]IONSIonis PharmaceuticalsHealthcare-3.36%83[33–95]KMBKimberly-ClarkConsumer-1.08%82[32–95]PENNPENN EntertainmentConsumer Cyclical-0.65%82[32–95]CELHCelsius HoldingsConsumer Defensive+0.87%82[32–95]HUBSHubSpot Inc.Technology-0.74%82[32–95]AOSA.O. Smith CorporationIndustrials-2.15%82[32–95]RYANRyan SpecialtyFinancial Services+1.97%82[32–95]FICOFair Isaac CorporationTechnology-1.02%81[31–95]FDSFactSet ResearchFinancial Services+0.66%80[30–95]CARTInstacartTechnology+0.79%80[30–95]RMDResMed Inc.Healthcare-0.67%80[30–95]IMAXIMAX CorporationCommunication Services-1.81%79[29–95]TEAMAtlassian CorporationTechnology+0.39%79[29–95]GISGeneral MillsConsumer-0.95%79[29–95]WIXWix.com Ltd.Technology+5.78%79[29–95]RIOTRiot PlatformsTechnology+8.26%79[29–95]WEXWEX Inc.Technology+1.24%79[29–95]CHTRCharter CommunicationsCommunication Services-3.09%79[29–95]GRABGrab HoldingsTechnology-0.85%77[27–95]CRUSCirrus LogicSemiconductors-0.99%77[27–95]STNEStoneCo Ltd.Technology-3.27%77[27–95]QLYSQualys Inc.Technology-2.39%76[26–95]AIC3.ai Inc.Technology-0.67%76[26–95]BBAIBigBear.ai HoldingsTechnology-3.15%76[26–95]CTSHCognizant TechnologyTechnology-0.02%76[26–95]TTDThe Trade DeskTechnology-1.62%75[25–95]RVTYRevvity Inc.Healthcare+3.92%75[25–95]UUnity SoftwareTechnology-1.21%75[25–95]HALOHalozyme TherapeuticsHealthcare-1.39%74[24–95]

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.