> Short Squeeze - Few Questions?

Short Squeeze - Few Questions?

Posted at: 2014-12-05 
1. The answer to this question lies in the definition of "short interest."

"The quantity of stock shares that investors have sold short but not yet covered or closed out."

http://www.investopedia.com/terms/s/shor...

In order to sell short, you must first have a margin account. With a margin account, you have a contract with the broker that allows you to sell short but you agree to return the shares at a later date or at the broker's request.

Selling short involves a "contract," similar to trading option "contracts." The short interest itself is the number of shares sold short that are still held short at the current time. It has to do with any number of "contracts" that are currently open and in effect. It has no time period. The short contracts stay open until they are closed, and the short shares are returned. It wouldn't make much sense to quote how many shares were shorted this year or today.

2. The short interest of most stocks is quoted in Barron's newspaper. You can use their website, but you will pay for that information. It is generally not available for free.

http://shortsqueeze.com/

Short interest data is notably out of date. For example, the Nasdaq lists short interest and updates the data twice per month.

https://www.nasdaqtrader.com/trader.aspx...

Shorting stock is usually done by advanced traders, not the average investor. In fact, it would not be "investing" at all, but "trading." Short interest is special data, used by a few short-term traders, and costs money to obtain separately. It is not quoted everywhere like other data, because 99% of the people out there don't care about it. It used to be more useful and more widely used than it is today, but with the advent of computers and the internet, other indicators and data have become more significant.

3. When "volume" is quoted, that is usually current daily volume, or number of stock shares traded today. Average trading volume is an "average" taken over a specific time period, like the average volume of the last 10 trading days or weeks, depending on the website. I think the Nasdaq website uses one rolling year for average volume. Average trading volume gives you a datum or reference point of how many shares trade in an average day, or normal day of trading. The shorter the time period, the more preference is given to recent data.

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David wrote a great answer. The point I would like to emphasis is that a lot of financial data is not available for free. We are so used to being able to find whatever information we want for frree in the golden age of the internet that it can be hard to accept that there is still information that you must pay for.

Good Day Everyone,

I have researched few descriptions about term Short Squeeze related to stocks trading and also related to short selling. The info needed seems to be so specific that I cannot find answers on my own so I came here to ask. I know what does short selling mean: when holding short sold stocks, the price is expected to go down but it goes up and we need to rush with buying back (returning them). However I have few very detailed questions so Please make sure you clearly understand every word of what I am asking. Please kindly read carefully the following questions:

1. I tried to contact author of the following blog:

http://www.investopedia.com/terms/s/shortsqueeze.asp

but no reply. My question(s) is/are regarding the following quoted text:

"'Two measures useful in identifying stocks at risk of a short squeeze are (a) short interest and (b) short-interest ratio. Short interest refers to the total number of shares sold short as a percentage of total shares outstanding, while short-interest ratio (SIR) is the total number of shares sold short divided by the stock’s average daily trading volume."

It says ''total number of shares sold short'' but I would like to know from which time until time of analyzing this? Until the company opening? Or until company registration? Or until moment of starting doing the business? Or for current year (last 365 days or, every fourth year, last 366 days OR current year at this time – bid difference)? So for what time period, FROM WHEN is this ''total number of shares sold short'' counted to exact second of analyzing? I think but Im in big doubt so I ask that correct answer is total number of shares sold short in the same day as checking this data so if I check total number of shares sold short then it would be for today: from 9:30 to 16:00 Eastern timezone but what if today was Saturday, Sunday or holiday? Please in your answer include TIMEZONE, am/pm and name of the day.

2. : I already know where can i see total shares outstanding (no matter what your answer would be on second question), e.g. application google finance shows this. But where can I see the number for ''total number of shares sold short'' – where, asking mainly on physical/electronical (website) source, can I see that data?

3. Regarding term ''averaga daily trading volume'': Google finance application is showing quantity of stocks traded on latest (this is NOT day of checking the data) trading day. If you are looking at google finance application, this is parameter Vol. Please kindly check application to see which exact ''Vol'' parameter do I mean. I would like to know if is ok to match this said Vol parameter as ''average daily trading volume''. Yes or no? If no, where else do I see ''average daily trading volume'' then? The main reason for asking this is that number of stocks traded on previous stocks-market-open day is something completely different than AVERAGE daily trading volume and I also don't know from how many past days in what time period is this ''average'' calculated.

Once again, I would appreciate a lot if you could please UNDERSTAND what I am asking. Without this, there is no way I could get needed answers, instead something else related to short squeeze. Thank you a lot in advance.