Today, a sea of red is enveloping the markets. Investors bullish on a continued momentum rally in hypergrowth plays may be disappointed by this price action. That said, short squeeze stocks remain a key topic of discussion right now. And for retail investors looking for lottery ticket-like returns, there remain a handful of stocks that are top of mind right now for adrenaline junkies.
This year has been an incredible one in the stock market. Capital flows into equities have continued to break records. This has happened in large part thanks to investors feeling they have no other alternative. Indeed, given where bond yields are right now, such a view is logical.
Additionally, the impressive rallies we have seen in various short squeeze stocks this year has amped up the speculative fervor. Specifically, smaller retail investors learning to use options for the first time are piling into such plays in a big way. This has resulted in a number of squeezes this year that have taken stocks on wild rides.
Those looking to find the latest and greatest short squeeze stocks have a number of places to look to. Social media platforms such as Discord, Twitter, and Reddit have become great echo chambers for certain stocks. However, other sites like Fintel that publish their list of short squeeze candidates have grown in popularity.
This week’s top 5 list of short squeeze stocks is an intriguing group. Let’s dive into what could be the best five short squeeze plays on the market right now.
Top Short Squeeze Stocks for Week of Sept. 20
- Vinco Ventures (NASDAQ:BBIG) has continued to make the top five list for some time. This stock’s short interest of 49% and borrow-fee rate of 33% remain extremely elevated.
- Aterian (NASDAQ:ATER) stays in the second spot this week, as raw short interest climbed from 4.38 million shares in mid-July to 6.68 million shares last week.
- Bit Mining (NYSE:BTCM) moves up into third spot amid expectations short-sellers may need to cover. That’s because this stock’s 142% borrow fee rate is among the highest in the market right now.
- Katapult Holdings (NASDAQ:KPLT) is a new addition to this list. This company’s short interest and borrow fee rate have skyrocketed to 16% and 37%, respectively.
- Finally, Sphere 3D (NASDAQ:ANY) rounds out the list. This stock has become a highly touted short squeeze play in recent weeks, given its sky-high borrow fee rates and short interest. That said, these metrics have declined somewhat recently, pushing this stock to fifth spot.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.