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The 10 Most Hated Stocks in the S&P 500 Are…

Even if you're a full-on bull for certain stocks, it's helpful to know how negative the bets are against them

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A look at the most shorted stocks can be helpful to investors, whether they are betting in favor of the stock rising or trying to profit from its decline.

S&P 500 shorted stocksThat’s because when short interest is high, there’s also a high chance of volatility. Obviously if a lot of bearish investors are piling into short positions, that is a measure of negative sentiment … but if a stock with high short interest just manages to post a glimmer of hope, a “short squeeze” can prompt a spectacular rally as short sellers rush to cover their positions and buy back the stock.

Depending on which side of the trade you’re on, you can either make a big profit or feel a lot of pain in a stock that has high short interest.

But one thing that’s universally true is that if you have any stake whatsoever in these heavily shorted S&P 500 stocks, either through a direct investment or through an index fund, you should be aware of what is going on and the potential for big volatility in these companies.

The following is a list of the most heavily shorted stocks in the S&P 500, as measured by short interest (that is, shares held short as a percentage of total shares available for trading) as of mid-July:

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