short interest in stocks Archives - Anuj Varma, Hands-On Technology Architect, Clean Air Activist https://www.anujvarma.com/tag/short-interest-in-stocks/ Production Grade Technical Solutions | Data Encryption and Public Cloud Expert Mon, 11 Dec 2023 15:08:13 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.2 https://www.anujvarma.com/wp-content/uploads/anujtech.png short interest in stocks Archives - Anuj Varma, Hands-On Technology Architect, Clean Air Activist https://www.anujvarma.com/tag/short-interest-in-stocks/ 32 32 Short Interest and Short Interest Ratio https://www.anujvarma.com/short-interest-and-short-interest-ratio/ https://www.anujvarma.com/short-interest-and-short-interest-ratio/#respond Mon, 11 Dec 2023 15:08:13 +0000 https://www.anujvarma.com/?p=9344 What does short interest represent? Short Interest – is the actual number of shares shorted compared to the total float. Expressed as a ratio. What is considered a HIGH short […]

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]]> What does short interest represent?

Short Interest – is the actual number of shares shorted compared to the total float. Expressed as a ratio.

What is considered a HIGH short interest?

Anything above a 10% is a HIGH short interest.

What is the short interest number of days to cover?

The average number of days it takes for short sellers to repurchase borrowed securities in the open market. The ratio is calculated by dividing the total number of shorted shares of a stock by the average daily trading volume.

E.g. – (Dec 2023, SOFI)

  • Short Interest ratio is 14.6 % – very high
  • Days to cover – 3.5 – in other words, it will take almost 4 days for short stock holders to buy back their shares on the open market. The higher this is, the more the potential for a short squeeze.
shares – source: NASDAQ
Short Interest Ratio 3.58 Days to Cover
Short Interest % Float 14.64 % – source: NASDAQ (short interest), Capital IQ (float)

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