Geigartt, the term squeeze means different things to different people. For some, it refers only to having your shares called in involuntarily. For others, it means a price rise that feeds on itself when there is a large short interest, due to shorts voluntarily covering.
When short interest represents 7 days of volume and 3% of shares outstanding, the risk of having your shares involuntarily called in is probably fairly small, in most cases. However, in the case of HMSC, many of us found it impossible to borrow shares, so that is probably a better indication that there is some risk of being called in. Considering that, I would probably not want to take a very big position.
In any case, I would recommend reading the SEC filings before taking any short position. One simply must do more research before selling short than before buying a stock. That's because you can pick any random stock, and make 10% per year if you buy it, and lose 10% per year if you sell it short. |
