Short squeezes have generated some massive returns recently, as the meme craze makes a comeback. Our Senior Quantitative Analyst Rocky White compiled a bi-weekly list of stocks most ripe for a short squeeze. The table features the equity's total available float tied up in short interest, how much short interest has increased over the last month, and how underwater these bearish bettors are.

This screen finds stocks where the shorts might be at a big loss and therefore likely to begin covering. Obviously, there are quite a few assumptions, so these would be very rough estimates.

To estimate the return for the shorts, White went over the past year of short interest reports to find when the shorts were added. He then used the average price over the prior two weeks and estimated the amount of shorts that were added at that average price. Below are stocks with significant shorts added, which could be at a big loss. 

You'll notice some old friends there, like earth exploration stock Rocket Lab (RKLB),  U.S. based rare earth miner MP Materials (MP), and quantum computing firebrand IonQ (IONQ).

The table is sorted by shorts at a loss. The highlighted portion shows stocks with 10% or more of their total available float sold short, indicating these names could see significant unwinding.

Semiconductor name Qualcomm Inc (NASDAQ:QCOM) will announce fiscal third-quarter earnings results after the close tomorrow, July 30. Ahead of the event, Wall Street analysts anticipate earnings of $2.71, a 16.3% year-over-year rise, on revenue of $10.34 billion, a 10.1% rise. 

Recently, QCOM's post-earnings history has been dismal. The stock finished all four of its next-day sessions lower over the past year, including an 8.9% drop in May. For this coming Thursday, the options pits are pricing in a 9% swing, regardless of direction, higher than the 6.3% move the stock has averaged over the last two years. 

On the charts, Qualcomm stock has been running into pressure at the $162 level since early June. Support at the $153 level lingers below, however, as well as the 50-day moving average. Year-to-date, the equity is up 5.7%. 

Notably, calls have been much more popular than usual over the past 10 weeks. QCOM's 50-day call/put volume ratio of 2.26 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 90% of readings from the past year. 

Shares of coffee chain Dutch Bros Inc (NYSE:BROS) have been pulling back since early June, down 0.2% at $59.36 at last glance today. The stock looks due for a short-term rebound, however, as the recent price action has it running into the supportive 200-day trendline, which coincides with its year-to-date breakeven level. 

Per Schaeffer's Senior Quantitative Analyst Rocky White, BROS is within 0.75 of the 200-day trendline's 20-day average true range (ATR) after spending at least 80% of the last 10 days and 80% of the last two months above it. Over the past three years, two similar signals have occurred, and the equity was higher one month later both times with an average 21% gain. A move of similar magnitude would put Dutch Bros stock at $71.82, erasing its July losses. 

BROS' 14-day relative strength index (RSI) of 30.7 sits on the cusp of "oversold" territory. Plus, short interest represents 6.6% of the stock's available float, leaving plenty of pent-up buying power in the event of a bounce.

 

Netflix Inc (NASDAQ:NFLX) stock was last seen down 0.9% at $1,165.72, trading at its lowest level since May 15 and on track for its third-straight daily loss, as well as its fourth consecutive week in the red. The security is up 30.8% in 2025, however, and sports an even healthier 83.4% year-over-year lead. Even better, a historically bullish trendline could soon help the shares move closer to their June 30, record high of $1,341.15.

Per Schaeffer's Senior Quantitative Analyst Rocky White, NFLX's recent pullback placed it within one standard deviation of its 80-day moving average. Shares were above this trendline in at least eight of the last 10 trading days, and spent 80% of the past two months above it.

Within these parameters, eight other signals occurred over the past three years, after which the stock was higher one month later 88% of the time, averaging a 12.2% gain. Should similar move happen, shares would land at $1,307.93 -- just shy of their record peak.

An unwinding of pessimism in the options pits could create additional headwinds. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), NFLX's 50-day put/call volume ratio sits higher than 96% of annual readings.

Options look affordably priced, making this an ideal time to bet on Netflix stock's next moves. This is per its Schaeffer's Volatility Index (SVI) of 27%, which stands in the 7th percentile of readings from the past year, suggesting options traders are pricing in low volatility expectations.

Quantum computing has been a hot topic this year, as the technology reaches critical mass. Sector leader IonQ Inc (NYSE:IONQ) sports a 412% year-over-year lead, but for 2025 it is only marginally above its year-to-date breakeven level. Despite a 1% quarterly drawdown, the recent weakness could have bullish implications, if past is precedent.

IonQ stock is within one standard deviation of its 50-day moving average. For the purpose of this study, Schaeffer’s Senior Quantitative Analyst Rocky White defines that as the equity trading above the moving average 80% of the time over the last two months, and closing north of the trendline in eight of the last 10 sessions.

Per White’s data, three similar signals have occurred during the past three years. IONQ was higher one month later 67% of the time, averaging a one-month gain of nearly 20%. From their current perch at $42.67, a move of similar magnitude would have the shares back above $50 for the first time since January.

There’s some short squeeze potential as well. Short interest is up 3% in the most recent reporting period, and the 36.51 million shares sold short account for 13.3% of IONQ's total available float. 

There could also be an unwinding of bearish bets in the options pits. The stock’s 10-day put/call volume ratio of 1.72 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the 100th percentile of readings from the past year.

Retail stock Williams-Sonoma Inc (NYSE:WSM) was last seen up 3.3% at $170.40, rebounding from its recent slide. The $180 level has given WSM some trouble for the past couple months, but this next run could finally push the stock above it. Per Schaeffer's Senior Quantitative Analyst Rocky White, the recent pullback has the equity within striking distance of its 50-day moving average, a historically bullish signal. 

More specifically, the stock is within 0.75 of the 50-day trendline's 20-day average true range (ATR) after spending at least 80% of the last 10 days and 80% of the last two months above it. Within these parameters, 11 other signals occurred in the past three years. WSM was higher one month later 82% of the time following these events, averaging a 7% gain. A move of similar magnitude from its current perch would put the shares above $182. 

Furthermore, though short interest has just begun to slowly unwind, it still represents 5% of the stock's available float, or over three days' worth of pent-up buying power, at WSM's average pace of trading. 

Options traders are pricing in low volatility expectations, per WSM's Schaeffer's Volatility Index (SVI) of 39%, which ranks in the low 4th percentile of its annual range. It's also worth noting that the stock has tended to outperform these volatility expectations, per its Schaeffer's Volatility Scorecard (SVS) of 82 out of 100.  

Shares of language learning platform Duolingo Inc (NASDAQ:DUOL) were last seen down 4.7% at $360.67, looking to extend their recent slide. The security marked its eighth-straight weekly loss this past Friday, moving sharply away from its May 14 record high of $544.93, though its still sporting an 11% year-to-date lead. 

For those looking to buy in on the dip, DUOL is currently flashing a historically bullish signal. Per Schaeffer's Senior Quantitative Analyst Rocky White, the recent pullback has Duolingo stock within striking distance of its 200-day moving average.

More specifically, the stock is within 0.75 of the trendline's 20-day average true range (ATR) after spending at least 80% of the last 10 days and 80% of the last two months above it. Within these parameters, four other signals occurred in the past three years. DUOL was higher one month later three of those times, averaging a large 26.2% gain. A move of similar magnitude would put the shares back up at $455. 

Furthermore, short interest has been building amid the negative price action, and now represents 6.1% of the stock's available float, leaving some short squeeze potential in the event of a rebound. 

An unwinding of pessimism amongst options traders could provide tailwinds as well. DUOL's 50-day put/call volume ratio of 1.67 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 93% of readings from the past year. 

Palo Alto Networks Inc (NASDAQ:PANW) stock was last seen up 2% to trade at $191.11, while also sporting a 13.7% year-over-year lead. The equity is rebounding after dropping to its lowest level since May 30, following two failed attempts to conquer a Feb. 19, record high of $208.39. The stock could soon push back toward those highs, however, as the recent pullback placed it near a historically bullish trendline.

According to Schaeffer's Senior Quantitative Analyst Rocky White, PANW is within one standard deviation of its 200-day moving average. Shares were above this this trendline in at least eight of the last 10 trading days, and spent 80% of the past two months above it. Within these parameters, seven other signals occurred over the past five years, after which the stock was higher one month later 86% of the time, averaging a 11.7% gain. Should a move of similar magnitude happen, the shares could notch a fresh record of $213.46.

Additional tailwinds could stem from an unwinding of pessimism in the options pits. This is per the security's Schaeffer's put/call open interest ratio (SOIR) of 1.27, which stands in the 72nd percentile of readings from the past 12 months. 

Options look like an affordable route for those looking to benefit from the security's next moves. This is per the stock's Schaeffer's Volatility Index (SVI) of 32%, which sits in the 5th percentile of its annual range. This means options traders are pricing in low volatility expectations.

This commentary first appeared on Forbes Great Speculations, where Schaeffer's Investment Research is a regular contributor.

Pet retail stock Chewy (CHWY) hit a June 6, two-year high of $48.62, but since then has taken a more than 20% haircut, thanks in large part to a massive 11% post-earnings drawdown on June 11. After a brief rally from there, the shares have struggled, logging back-to-back weekly losses. The good news is that this pullback has CHWY testing a historically bullish trendline. 

The stock is within one standard deviation of its 80-day moving average. For the purpose of this study, Schaeffer’s Senior Quantitative Analyst Rocky White defines that as the equity trading above the moving average 80% of the time over the last two months, and closing north of the trendline in eight of the last 10 sessions.

Per White’s data, six similar signals have occurred during the past three years. CHWY was higher one month later 78% of the time, averaging a one-month gain of 10.9%. From their current perch at $38.68, a move of similar magnitude would have the shares erasing their 9.3% quarter-to-date deficit and extending a 15.4% year-to-date lead. It would also place the security back in an uptrend channel from its 2025 peak and valley. Note CHWY’s 14-Day Relative Strength Index (RSI) is also drifting into “oversold” territory around 33, an area that preceded rallies back in the fall and spring. 

There’s some exciting short squeeze potential to monitor as well. Short interest is up 7.7% in the most recent reporting period, and the 15.51 million shares sold short account for 7.3% of CHWY’s total available float. 

There could also be an unwinding of bearish bets in the options pits. Chewy stock’s 10-day put/call volume ratio of 0.68 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 92% of readings from the past year. So while calls still outflank puts on an absolute basis, the high percentile means options traders have been much more pessimistic than usual.

Options are affordably priced at the moment, too, per our Schaeffer’s Volatility Index (SVI) of 38% that sits in the low 7th percentile of its annual range. A premium-selling strategy could be the move going forward, as CHWY’s Schaeffer's Volatility Scorecard (SVS) checks in at a 8 out of 100. This means the security has consistently realized lower volatility than its options have priced in.

EQT Corp (NYSE:EQT) is down 1.5% at $54.06 at last glance, extending a pullback from its June 23, record high of $61.02. The security still boasts a 17.4% year-to-date lead, and support at $52 looks ready to contain any additional losses. What's more, a historically bullish signal flashing may help EQT partially reverse this recent pullback.

According to Schaeffer's Senior Quantitative Analyst Rocky White, EQT is within one standard deviation of its 126-day moving average. Shares were above this this trendline in at least eight of the last 10 trading days, and spent 80% of the past two months above it. Within these parameters, five other signals occurred in the past five years, after which the equity was higher one month later 60% of the time, averaging a 7.1% gain. 

Short-term options traders have been much more bearish than usual. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.36, which ranks in the 92nd percentile of annual readings. An unwinding of this pessimism could create additional tailwinds for EQT.

Options look like an affordable route for those looking to benefit from the security's next moves. This is per the stock's Schaeffer's Volatility Index (SVI) of 33%, which sits in the 9th percentile of its annual range. This means options traders are pricing in low volatility expectations.

Gold mining stock Agnico Eagle Mines Ltd  (NYSE:AEM) is up 1.3% at $117.65 at last glance, brushing off a stronger U.S. dollar as investors favor the greenback amid President Donald Trump's latest tariff threats. The security sports a 50.3% year-to-date lead and is getting support from the $115 region, after a failed June attempt to conquer its April 21, record high of $126.73. Another shot at that new peak could still be within reach, though, thanks to a historically bullish signal.

According to Schaeffer's Senior Quantitative Analyst Rocky White, AEM is within one standard deviation of its 80-day moving average. Shares were above this this trendline in at least eight of the last 10 trading days, and spent 80% of the past two months above it. Within these parameters, eight other signals occurred in the last five years, after which the equity was higher one month later 64% of the time, averaging a 4.7% gain. 

Options look like an affordable route for those looking to benefit from the security's next moves. This is per AEM's Schaeffer's Volatility Index (SVI) of 34%, which sits in the 13th percentile of its annual range. This indicates options traders are pricing in low volatility expectations.

Retail stock Macy's Inc (NYSE:M) was last seen up 1.1% at $12.59, and running into several layers of resistance on the charts. The $12.60 level has kept a lid on gains for the last couple months, while overhead pressure at the 100-day moving average has moved in as well -- a trendline that has preceded downturns in the past. 

Per Schaeffer's Senior Quantitative Analyst Rocky White, the stock is within 0.75 of the 100-day moving average's 20-day average true range (ATR), after spending at least 80% of the last 10 days and 80% of the last two months above it. Within these parameters, five other signals occurred in the past three years. M was lower one month later 80% of the time after those instances, averaging a 7.8% loss. A move of similar magnitude would have the shares at $11.61. 

Macy's stock has struggled to rally off its April 8, four-year low of $9.76. Since the start of the year, the shares are down roughly 26%. 

An unwinding of optimism amongst options traders could provide additional headwinds. M's 10-day call/put volume ratio of 7.47 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 86% of readings from the past year.