There are 43 domestic stocks with Short Interest % of Float greater than 40% and total short interest greater than $25 million. These are stocks which have a greater chance of a short squeeze if stock loan supply gets tight; stock borrow rates negatively impact net of financing expected Alpha; mark-to-market losses mount if the security rallies; or recalls start hitting the street. The Offer Rate is the market stock borrow rate for the security and the Last Rate is todayâ€™s stock borrow rate for the security. The higher the Offer Rate the less stock borrow supply there is on the street while a higher Last Rate indicates that supply is diminishing quickly and rates on existing short positions will increase. Using the Screening Tool in the S3 App, you can access this data on a daily basis on your own.
On the ETF side, there are only 11 domestic ETFs with Short Interest % of Float greater than 40% and total short interest greater than $25 million. Borrow rates on these ETF shorts are generally cheaper than equities with high SI % Float due to the ability for brokers to create ETFs as trading or stock borrow demand increases although ETNs and leveraged ETFs usually have higher stock borrow rates due to the difficulty and expense of creating new shares.
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