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

26 tickers firing right now

TickerCompanySectorChangeScore

SWKSSkyworks Solutions, Inc.Technology+3.41%86[72–95]TTDThe Trade DeskTechnology+5.97%85[71–95]SMCISuper Micro ComputerTechnology+8.71%84[70–95]DUOLDuolingo Inc.Technology+3.15%84[68–95]LYFTLyft Inc.Technology+1.50%83[67–95]PINSPinterest Inc.Communication+0.66%82[67–95]CLFCleveland-CliffsMaterials+7.37%79[64–94]COINCoinbase GlobalTechnology+0.93%77[62–92]WINGWingstop Inc.Consumer+1.41%77[63–91]ARMArm HoldingsSemiconductors+14.76%76[60–92]RDDTReddit Inc.Communication+1.26%75[61–89]GOLDBarrick GoldMaterials+0.23%75[62–88]CRMSalesforce Inc.Technology+2.80%75[61–89]ONON SemiconductorSemiconductors+0.63%74[58–90]WDAYWorkday Inc.Technology+4.44%73[58–88]HUBSHubSpot Inc.Technology+4.02%72[57–87]CTSHCognizant Technology Solutions CorporationTechnology+0.02%72[58–86]SNAPSnap Inc.Communication+1.44%72[56–88]AALAmerican AirlinesIndustrials+2.72%72[57–87]DELLDell TechnologiesTechnology+1.86%71[55–87]DKNGDraftKings Inc.Consumer+4.56%71[55–87]ILMNIllumina, Inc.Healthcare+1.95%70[57–83]XPEVXPeng Inc.Consumer+4.78%70[55–85]ENTGEntegris Inc.Semiconductors+4.45%70[54–86]IVZInvesco Ltd.Financial Services+0.55%69[54–84]AFRMAffirm HoldingsFinancials+1.17%66[51–81]

Disclaimer. Pattern matches are research signals, not investment advice. Past performance of an academic effect does not guarantee future returns. Forward-return tracking for DeepVane's own implementation begins 2026-05-16 after the calibration window closes.