Squeeze Ideas: 7 Highly Shorted Stocks With Increasing Put/Call Ratios

|
Includes: CHBT, DSW, PETS, QSII, RBN, REG, STAR
by: Kapitall

The following is a list of highly shorted stocks, with short floats higher than 15%. All of these stocks have seen a recent increase in the Put/Call ratio, which is based on open interest of option contracts.

In addition, the Put/Call ratios of these companies are at the upper end of their annual ranges.

Some technical traders view the Put/Call ratio as a contrary indicator when it reaches extreme highs or lows. In other words, because the stocks mentioned below have a high number of open put option positions relative to call option positions, contrarians might think most of the stocks mentioned below are set for a rally.

Are any of these names ready for a short squeeze? What do you think? Full details below.

Options data sourced from Schaeffer's, short float and performance data sourced from Finviz. (Please note: All changes in the Put/Call ratio occur between 1/06 - 1/20)

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.

The list has been sorted by the change in the Put/Call ratio.

1. Quality Systems Inc. (NASDAQ:QSII): Healthcare Information Services Industry. Market cap of $2.12B. Current Put/Call ratio at 3.03 vs. a previous ratio of 1.82 (66.48% change). Short float at 29.04%, which implies a short ratio of 28.04 days. The stock has gained 19.13% over the last year.

2. PetMed Express Inc. (NASDAQ:PETS): Drug Delivery Industry. Market cap of $355.6M. Current Put/Call ratio at 5.45 vs. a previous ratio of 4.1 (32.93% change). Short float at 30.59%, which implies a short ratio of 34 days. The stock has lost -16.12% over the last year.

3. Robbins & Myers Inc. (NYSE:RBN): Diversified Machinery Industry. Market cap of $1.34B. Current Put/Call ratio at 2.05 vs. a previous ratio of 1.69 (21.3% change). Short float at 21.46%, which implies a short ratio of 13.65 days. The stock has gained 63.24% over the last year.

4. Regency Centers Corporation (NYSE:REG): REIT. Market cap of $3.39B. Current Put/Call ratio at 1.73 vs. a previous ratio of 1.44 (20.14% change). Short float at 15.59%, which implies a short ratio of 17.72 days. The stock has gained 14.56% over the last year.

5. iStar Financial Inc. (SFI): REIT. Market cap of $737.64M. Current Put/Call ratio at 1.2 vs. a previous ratio of 1.05 (14.29% change). Short float at 21.54%, which implies a short ratio of 9.12 days. The stock has gained 131.59% over the last year.

6. DSW Inc. (NYSE:DSW): Apparel Stores Industry. Market cap of $1.46B. Current Put/Call ratio at 2.4 vs. a previous ratio of 2.12 (13.21% change). Short float at 26.7%, which implies a short ratio of 10.3 days. The stock has gained 24.99% over the last year.

7. China-Biotics, Inc. (OTC:CHBT): Drug Manufacturer. Market cap of $387.18M. Current Put/Call ratio at 1.63 vs. a previous ratio of 1.44 (13.19% change). Short float at 30.54%, which implies a short ratio of 9.52 days. The stock has gained 15.3% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

About this article:

Expand
Author payment: $35 + $0.01/page view. Authors of PRO articles receive a minimum guaranteed payment of $150-500.
Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here