Schaeffer's bi-weekly list of the 25 tickers with the biggest percentage increases in short selling turned up some interesting names. The largest mover was chemical maker PPG Industries, Inc. (NYSE:PPG - 139.95), which saw its short interest shoot up by 208% during the last two weeks, and now short interest makes up nearly 10% of the company's float. Other big movers included Delta Air Lines, Inc. (NYSE:DAL - 13.83), which saw short interest rise 64%, and steelmaker ArcelorMittal (ADR) (NYSE:MT -17.69) . Short interest is the measure of a company's shares that have been sold short, which is when an investor sells shares he/she has borrowed from a broker (in hopes of buying them back at a lower level in the future and pocketing the difference as profit). From our contrarian perspective, high short interest can be a good sentiment indicator of possible future buying demand.
Here's a more detailed description of short interest and why it's important, especially in the options game, along with Schaeffer's own tool to view a particular equity's level of short interest.
And below the chart is an in-depth look at three big movers who either are already popular in the options pits or have the big potential for a short-term rally. It should be noted that Schaeffer's Volatility Scorecard (SVS) readings for all three names is elevated, meaning options are reasonably priced at current levels, relative to the odds of a strong move in the shares.
The Case for Big Moves in IWM and QQQ
Featured Partners: AOL DailyFinance
© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242
Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: firstname.lastname@example.org
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.