Short Interest Formula

The short interest can be calculated by taking the number of shares short divided by the total number of stocks in float .

Interpreting Short Interest.

Short Interest

What It Is:

Short interest is the number of shares or units of a security that have been sold short and not yet covered or repurchase d. It is typically expressed as a percentage of the total securities outstanding.

Short interest ratio

The short ratio (or short interest ratio ) is usually the number of shares of shares of a publicly traded company that is sold short. divided by the average daily trading volume (daily transaction ). It can also be the percentage of the free float that is short ed.

The short interest ratio can also be calculated for entire exchange s to determine the sentiment of the market as a whole. If an exchange has a high short interest ratio of around five or greater, this can be taken as a bearish signal. and vice versa.

High Short Interest Stocks

Taking a Close r Look

High Short Interest Stocks attract a lot of attention, especially during an economic downturn. Attention is given from Hedge Funds. Institutional Trader s, Individual Trader s, Economists, the Media and Governments, among others.

The short interest ratio like the put to call ratio is used to gage market settlement. It allows you to understand where other people believe the market will go.

The NYSE Short Interest Ratio

Short interest

Total number of shares of a given stock that have been sold short and not yet repurchase d. Usually, investor s sell short to profit from price declines. As a result, the short interest is often an indicator of the amount of pessimism in the market about a particular security.

Short Interest Table

Below is a short interest table for Federal Home Loan Mortgage Corporation (FNM). Notice how the stock had a days to cover value of 9.21 at the end of May which ultimately led to swift sell off.

Short Interest Ratio — a ratio which tells how many days it would take to buy back all the shares which have been sold short. A short interest ratio of 2 would indicate that it would take 2 trading days to buy back all the shares which have been sold short. This is based on the current volume.

Short Interest

short interest — the number of a company’s shares that have been sold short and not yet repurchase d, frequently report ed as the number of days it would take to cover the short position. assuming the volume of stock stays at its average volume traded over the past 30 days.

Short Interest Ratio A ratio that indicates the number of trading days required to repurchase all of the shares that have been sold short. A short interest ratio of 2.50 would tell us that based on the current volume of trading. it will take two and a half days’ volume to cover all short s.

NYSE short interest is near a five-year peak, which is a decent contrarian indicator .

Rising Short Interest (millions of shares )

S&P 500 Short Interest Is at Record High s

Short interest in the average S&P 500 stock is at the highest level since September 2012, which could actually serve as a contrarian indicator as this market continues grinding higher.

Short interest is a figure calculated by the exchange that reflects the total number of stocks or financial contract s outstanding. Some trader s interpret higher short interest as a sign that the market is due for a decline but this is not necessarily the case.

Short Interest Ratio. number of days it would take to cover short interest at average daily volume (short interest divided by average daily volume ).