Friday, January 8, 2010

How To Find The Short Interest In a Stock

Have you ever wondered how many shares are short in a particular stock?
Maybe you did not even know this information exists, well it does and can be useful stuff! Finding out how many shares are short of a company can be vital information when looking to trade a stock, pretty much this information will tell you how many people are betting against this stock and want’s to see it drop like a rock. On the other hand this information can let you know how much the stock price can squeeze higher if all those individuals suddenly want to cover those short positions, which will make the stock price spike very rapidly. Some instances for those who short the stock want to cover will be, a positive P/R, Good earnings news, a big buyer coming in and pushing the price higher ect… All of which will force shorts to cover and in turn spike the stock price and if you have a long position when it spikes you could see a significant jump in your percentage gain, it might be in your interest to sell into that spike to hold on to those profits!
In this article i will tell you places to find this information as well as show you some chart examples of a blatant short squeeze!

lets get to it!
1.)The first place i will show you is of course yahoo finance. So open up a new tab or browser window and head on over there.
Once there enter in the company or ticker symbol in the “Get Quote” text box located on the top right hand side.  get qoute box

2.)For this rundown i will use a familiar company “Amazon (AMZN)”. Once you enter in your ticker or the company name a new screen will appear with the stock quote information. What we are looking for is a small link under “Company” section called “Key Statistics”, which will be in the left hand column next to the quote information. I underlined this link with a red line in the picture.
Key statistics

3.)Now that you are at this screen, wonder over to the right side and scroll down some untill you see a section Called “Share Statistics” this is what we want!
Share statistics
This is were you will find the short interest in a stock at that given time. Notice in the picture i highlighted the key areas that will be of most use, Shares Outstanding, Float, Shares short ect… In this example you can see that amazon has 13.68 million shares short of the float which is 332.18million shares. If don’t know what the float is, well it is the number of shares that is publicly traded. So 4.90% of the float is short this stock. And you can see that this number has risen since the prior month which was 17.5 million shares short. This will let you know that a lot of people are betting against this stock and think it has gone up to much, only you can decide if they are wrong or wright and go against them or join them.

Alternative way of getting this information.
Now remember i mentioned this is one of many ways to get this type of information. The second way is a little bit easier to get to and has a tiny bit more information on the short interest.
1.) go to the ShortSqueeze website.
And as before enter the ticker symbol into the text box and hit “short quote”.
short quote text box
2.) Now it will bring up the short interest in this stock with a lot of extra information. This site also has some proprietary information regarding the short intrest, like there “Short Squeeze Ranking” ect.. which they have other things as well but you have to be a premium member to get a hold of that stuff, which in my opinion is unnecessary info.
This is all the info you need here.
short intrest

Both of these sites are free and provides useful information. I just wanted to present more than one option so that you can decide which one you like better. Now you know how to get short interest information on a particular stock and use it to your advantage! Good luck! :)

Examples of some Short Squeeze’s

Stay tuned for more Tutorials, if you have questions or want to give feedback please comment below! :)

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