{"id":4434,"date":"2021-02-08T12:00:00","date_gmt":"2021-02-08T17:00:00","guid":{"rendered":"https:\/\/teachingmillionaires.com\/?p=4434"},"modified":"2021-02-23T10:47:21","modified_gmt":"2021-02-23T15:47:21","slug":"next-short-squeeze-stocks","status":"publish","type":"post","link":"https:\/\/teachingmillionaires.com\/newstag\/next-short-squeeze-stocks\/","title":{"rendered":"Next Short Squeeze Stocks"},"content":{"rendered":"\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Next Short Squeeze Stocks\" width=\"720\" height=\"405\" src=\"https:\/\/www.youtube.com\/embed\/oAy_Xe9qLf0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Here&#8217;s an overview of why short squeeze investing has become popular &#8211; and breakdown of the next short squeeze stocks.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p style=\"font-size:12px\"><em>\u201cteachingmillionaires.com has partnered with&nbsp;<a href=\"https:\/\/teachingmillionaires.com\/recommends\/cardratings-blog-disclosure\/\" target=\"_blank\" rel=\"noreferrer noopener\">CardRatings<\/a>&nbsp;for our coverage of credit card products.&nbsp;<em>teachingmillionaires.com<\/em>&nbsp;and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses &amp; recommendations are the author\u2019s alone, and have not been reviewed, endorsed or approved by any of these entities.\u201d<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong><strong><strong>How Does Short Selling a Stock Work?<\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>September 2019, Reddit users noticed Wall Street hedge funds were shorting <a href=\"https:\/\/teachingmillionaires.com\/recommends\/rich-m1-finance\/\" target=\"_blank\" rel=\"noreferrer noopener\">GameStop stock<\/a>.&nbsp; This means these hedge funds were betting that the stock would go down in price.&nbsp; Then, at some point the future, they&#8217;re going to have to buy the stock to cover their bet\u2014this is how short selling a stock works.<\/p>\n\n\n\n<p>Their hope is that the price of the stock goes down, so they could buy it at a cheaper price. &nbsp;Then, they pay back what they owe and make money on the difference.<\/p>\n\n\n\n<p>Shorting stocks is a risky way to invest. &nbsp;It involves essentially gambling that a company is going to fail.&nbsp; The fact this type of news is being covering by the mainstream media makes it an opportunity for all of us to learn more about how the stock market works.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"428\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/02\/Reddit-GameStop-Headline-1024x428.png\" alt=\"Short Squeeze Stocks\" class=\"wp-image-4436\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Reddit-GameStop-Headline-1024x428.png 1024w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Reddit-GameStop-Headline-300x125.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Reddit-GameStop-Headline-768x321.png 768w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Reddit-GameStop-Headline.jpg 1424w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Short Squeeze Stocks<\/figcaption><\/figure><\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong><strong><strong><strong>What Happens to a Stock After a Short Squeeze?<\/strong><\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>These Reddit groups noticed the possibility of a short squeeze on GameStop stock. &nbsp;The term \u201cshort squeeze\u201d means that as prices begin to rise, all those people who have short positions get squeezed to close out their positions.&nbsp; This means they buy the stock at a higher price than what they bet.<\/p>\n\n\n\n<p>When this happens, those people who had short positions lose money.&nbsp; As a result, the price of the stock itself is driven up higher and higher when those short positions sell.&nbsp; This short squeeze creates an opportunity for those holding the stock to make money because the stock price increases.<\/p>\n\n\n\n<p>The idea of a short squeeze against the hedge funds shorting GameStop went viral January 2021. &nbsp;Reddit, TikTok, YouTube, and eventually mainstream media, excited many people to want to buy shares of GameStop. The <a href=\"https:\/\/teachingmillionaires.com\/recommends\/webull\/\" target=\"_blank\" rel=\"noreferrer noopener\">higher the stock price went<\/a>, the more money the hedge funds lost.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"522\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/02\/Shorting-Stock-Headline-1024x522.png\" alt=\"\" class=\"wp-image-4437\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Shorting-Stock-Headline-1024x522.png 1024w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Shorting-Stock-Headline-300x153.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Shorting-Stock-Headline-768x392.png 768w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Shorting-Stock-Headline.png 1075w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Did Robinhood Stop Trading GameStop?<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>When news of the GameStop short squeeze went viral, <a href=\"https:\/\/teachingmillionaires.com\/recommends\/robinhood\/\" target=\"_blank\" rel=\"noreferrer noopener\">Robinhood<\/a> restricted buying of GameStop stock.&nbsp; In fact, the ticker symbol for GameStop GME was taken off the Robinhood app.&nbsp; Essentially, everyday investors like me and you weren&#8217;t allowed to buy any more.<\/p>\n\n\n\n<p>Some are calling this market manipulation. &nbsp;Robinhood released statements that these restrictions were necessary so they could gather capital to cover their collateral at the clearinghouses.&nbsp; Their claim was regulatory requirements forced them to stop GameStop buying.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/02\/Robinhood-Response-1024x491.png\" alt=\"Robinhood Short Squeeze Stocks\" class=\"wp-image-4441\" width=\"1044\" height=\"500\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Robinhood-Response-1024x491.png 1024w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Robinhood-Response-300x144.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Robinhood-Response-768x368.png 768w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Robinhood-Response.jpg 1245w\" sizes=\"(max-width: 1044px) 100vw, 1044px\" \/><figcaption>Robinhood Short Squeeze Stocks<\/figcaption><\/figure><\/div>\n\n\n\n<p><\/p>\n\n\n\n<p>These limitations remained in place for a few days on Robinhood.&nbsp; However, as of this writing, those limitations have been lifted.&nbsp; Robinhood CEO Vlad Tenev has done multiple interviews attempting to explained what happened and is expected to testify in front of a U.S. House committee later this month.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong><strong><strong><strong>What Stocks are Shorted the Most?<\/strong><\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>If this short squeeze mentality continues, then the GameStop investing community is going to be looking for the next short squeeze stocks.<\/p>\n\n\n\n<p>You may have already started to hear stories of <a href=\"https:\/\/teachingmillionaires.com\/recommends\/robinhood\/\" target=\"_blank\" rel=\"noreferrer noopener\">people buying AMC, Dogecoin, and Silver<\/a>.&nbsp; The purpose of this article is to present an investing experiment. &nbsp;I am going to pick 10 stocks that are all heavily shorted right now under $10.<\/p>\n\n\n\n<p>My plan is to buy an equal share of each of these 10 stocks to create a 100% portfolio on M1 Finance.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"702\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/02\/M1-Short-Squeeze-Pie-1024x702.png\" alt=\"M1 Short Squeeze Stocks\" class=\"wp-image-4439\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/M1-Short-Squeeze-Pie-1024x702.png 1024w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/M1-Short-Squeeze-Pie-300x206.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/M1-Short-Squeeze-Pie-768x527.png 768w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/M1-Short-Squeeze-Pie.png 1219w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>M1 Short Squeeze Stocks<\/figcaption><\/figure><\/div>\n\n\n\n<p><\/p>\n\n\n\n<p>Personally, I do not think this is the best investment strategy.&nbsp; Maybe I&#8217;ll make a little bit of money, but I also have the potential of losing money. &nbsp;This \u201cgambling\u201d approach to investing is what I plan to track over time.<\/p>\n\n\n\n<p>I am more of an <a href=\"https:\/\/teachingmillionaires.com\/best-index-funds\/\">index fund investor long-term<\/a>, and I have a portion of my net worth in real estate and <a href=\"https:\/\/teachingmillionaires.com\/recommends\/rich-gemini\/\">some cryptocurrencies including Bitcoin and Ethereum<\/a>.<\/p>\n\n\n\n<p>Here\u2019s my top 10 list of the next short squeeze stocks under $10:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Clovis Oncology Inc CLVS<\/strong> \u2013 a biopharmaceutical company that focuses on anti-cancer agents worldwide.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Dynavax Technologies Corp. DVAX<\/strong> \u2013 a biopharmaceutical company that focuses on immune response stimulation.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Kindred Biosciences Inc KIN <\/strong>\u2013 a biopharmaceutical company that develops biologics focused on the lives of pets.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Lannett Co., Inc. LCI<\/strong> \u2013 develops, manufactures, packages, markets, and distributes generic versions of brand pharmaceutical products in the United States.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Opko Health Inc OPK <\/strong>\u2013 a healthcare company that focuses on diagnostics and pharmaceutical business worldwide.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Precigen Inc PGEN<\/strong> \u2013 develops gene and cellular therapies in the United States.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Senseonics Holdings Inc SENS<\/strong> \u2013 a medical technology company that develops continuous glucose monitoring CGM systems for people with diabetes in Europe.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Sirius XM Holdings Inc SIRI<\/strong> \u2013 provides satellite radio service on a subscription fee basis in the United States.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>TherapeuticsMD Inc TXMD<\/strong> \u2013 a women\u2019s healthcare company in the United States.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>United Microelectronics Corporation UMC<\/strong> \u2013 a semiconductor wafer foundry that operates worldwide.<\/li><\/ul>\n\n\n\n<p>You can follow along with this experiment and <a href=\"https:\/\/teachingmillionaires.com\/recommends\/rich-short-squeeze-pie\/\" target=\"_blank\" rel=\"noreferrer noopener\">my portfolio of short squeeze investments here<\/a>.  M1 Finance is <a href=\"https:\/\/teachingmillionaires.com\/recommends\/m1-finance\/\" target=\"_blank\" rel=\"noreferrer noopener\">currently offering $30 when you sign up and fund your account<\/a>.<\/p>\n\n\n\n<p>I\u2019ll start with a <a href=\"https:\/\/teachingmillionaires.com\/recommends\/rich-short-squeeze-pie\/\" target=\"_blank\" rel=\"noreferrer noopener\">10% stake in each of these companies<\/a>.&nbsp; You might recognize Sirius XM Satellite Radio but have no ideas about some of the other stocks.&nbsp; Remember, these picks are pure speculation on my part \u2026 this is not investment advice.<\/p>\n\n\n\n<p>Rather, this is for educational and entertainment purposes.&nbsp; I am a finance blogger, YouTuber, and podcaster who makes content on what&#8217;s going on in the world of money.&nbsp; As the world continues to evolve and investing becomes more social, I plan to be there as a resource for you.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Listen to Teacher Entrepreneurs Podcast<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<iframe style=\"border: none\" src=\"\/\/html5-player.libsyn.com\/embed\/episode\/id\/17866061\/height\/90\/theme\/custom\/thumbnail\/no\/direction\/backward\/render-playlist\/no\/custom-color\/daa520\/\" height=\"90\" width=\"100%\" scrolling=\"no\" allowfullscreen=\"\" webkitallowfullscreen=\"\" mozallowfullscreen=\"\" oallowfullscreen=\"\" msallowfullscreen=\"\"><\/iframe>\n\n\n\n<p><\/p>\n\n\n\n<p>As always, I&#8217;m Rich and until next time.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-small-font-size\"><em>\u201cteachingmillionaires.com has partnered with <a href=\"https:\/\/teachingmillionaires.com\/recommends\/cardratings-blog-disclosure\/\" target=\"_blank\" rel=\"noreferrer noopener\">CardRatings<\/a> for our coverage of credit card products. <em>teachingmillionaires.com<\/em> and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses &amp; recommendations are the author\u2019s alone, and have not been reviewed, endorsed or approved by any of these entities. <em>Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser&#8217;s responsibility to ensure all posts and\/or questions are answered<\/em>. I am not a financial advisor. The information I share is for educational purposes only and shouldn\u2019t be considered as certified financial or legal advice. It is imperative you conduct your own research. I am sharing my opinion only.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here&#8217;s an overview of why short squeeze investing has become popular &#8211; and breakdown of the next short squeeze stocks. \u201cteachingmillionaires.com has partnered with&nbsp;CardRatings&nbsp;for our coverage of credit card products.&nbsp;teachingmillionaires.com&nbsp;and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses &amp; recommendations are the author\u2019s alone, and have not been reviewed, endorsed or approved&#8230;<\/p>\n","protected":false},"author":3,"featured_media":4445,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[10,1],"tags":[],"class_list":["post-4434","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-saving-investing","category-all-posts"],"featured_image_src_large":["https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Short-Squeeze-Thumbnail-1024x576.jpg",1024,576,true],"author_info":{"display_name":"Rich Smith","author_link":"https:\/\/teachingmillionaires.com\/newstag\/author\/rich\/"},"comment_info":8,"category_info":[{"term_id":10,"name":"Saving &amp; Investing","slug":"saving-investing","term_group":0,"term_taxonomy_id":10,"taxonomy":"category","description":"","parent":0,"count":14,"filter":"raw","cat_ID":10,"category_count":14,"category_description":"","cat_name":"Saving &amp; Investing","category_nicename":"saving-investing","category_parent":0},{"term_id":1,"name":"All Posts","slug":"all-posts","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":33,"filter":"raw","cat_ID":1,"category_count":33,"category_description":"","cat_name":"All Posts","category_nicename":"all-posts","category_parent":0}],"tag_info":false,"taxonomy_info":{"category":[{"value":10,"label":"Saving &amp; Investing"},{"value":1,"label":"All Posts"}]},"_links":{"self":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/posts\/4434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/comments?post=4434"}],"version-history":[{"count":0,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/posts\/4434\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/media\/4445"}],"wp:attachment":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/media?parent=4434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/categories?post=4434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/tags?post=4434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}