How RadioShack Corporation (RSH) Shorts Came Out on Top

RadioShack Corporation (RSH) is reportedly preparing for bankruptcy

Jan 15, 2015 at 10:54 AM
facebook X logo linkedin


Option traders have displayed a bullish bias toward RadioShack Corporation (NYSE:RSH) in recent months, per data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, the stock's 50-day call/put volume ratio on this trio of exchanges sits at 2.32 -- in the 67th percentile of its annual range.

Speculators outside of the options arena have taken a decidedly different angle, though. In fact, more than 23% of the equity's float is sold short, and it would take nearly six sessions to cover these shorted shares, at RSH's average daily pace of trading.

Looking at the charts reveals it's short sellers who are winning the game on the struggling electronics chain. Year-over-year, the equity has lost roughly 86% of its value, and more recently, the stock has spent the past four months wallowing in penny-stock territory.

Despite a dead-cat bounce earlier this week on news of a half-billion-dollar lifeline, the equity quickly resumed its downtrend, and today, is off nearly 30% on reports the company is preparing to file for bankruptcy as early as next month. Additionally, the security tagged $0.26 out of the gate -- its lowest mark on record -- and was last seen trading at $0.29.

Daily Chart of RSH Since January 2014
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI