RE:RE:Talk about rocket fuel...look at Google
'Short Squeeze' ,that will answer part of your question. Then look at how many shares are for sale, on average about 500k, right now L2 is showing 409,477 available all the way to $88.00.
Between May 15 and Jun 1 the short trades increased from about 40k short to 2.6M short at an average of around .90/share. If I am short I need the stock to go below .90 to make any money.
Shorters can also average up just like a regular trader would average down, only problem is they need to
short more to do that. At some point margins are called and shorts need to cover regardless of the price, the other factor where shorts would want to cover is when a company announces good news.
What do you think would happen to the SP, if a short trader wanted to cover 500k or 1m or 2.6m (or more?) shorts after a great news release, but there are only 500k available at an average of (VWA) of $9.5?
I've seen a few short squeezes happen over the years, it's chaotic, breakers get triggered etc. but those have mostly been with companies that carry significant floats. A short squeeze on PYR would be (
will be?) one for the history books.
Stay safe!
dcowan wrote: help me out... I don't see this as being a good thing???