RE:Number of Short Positions?Shorts can be a good or bad indicator.
A high number of shorts can mean...
a. A lot of people are better against the current stock price
b. Alot of people are trapped in short positions when the stock rose.
Given the $3 run up last week - i'm inclined to think its the latter.
Which is good if you are LONG.
26 million shares need to be bought back (which will drive the price up)
Another sudden move up on news would create a situation where shorts need to buy to cover their positions (further driving up the stock price). As prices spike the short squeeze puts more pressure on the shorts to but (to close their position)
The longer they wait the more it costs them
(that's one scenario anyways.)
ProfessorTrade wrote: Hi, I'm a bit new to this forum and a bit new to investing in general. Just wondering why there is so much short positions on this stock? I got in with intentions of going long and being invested at least until the end of 2018 but the number of short positions is scaring me. Is there something that I'm missing? Are we expecting the price of this stock to drop??