Trading Volume Explodes as Energous Shorts Run for Cover

WATT stock briefly bounced into positive year-to-date territory this morning

Managing Editor
Dec 27, 2017 at 9:56 AM
facebook twitter linkedin


Wireless technology stock Energous Corp (NASDAQ:WATT) received some good news this morning, after the Federal Communications Commission (FCC) granted certification for the company's WattUp Mid Field wireless charging transmitter. This marks the first FCC certification for power-at-a-distance wireless charging, per a company press release.

The FCC milestone has sent WATT up an astounding 83.1% to trade at $16.18 this morning. Prior to today's surge, WATT stock had lost 47% in 2017, and fell to an annual low of $6.91 on Nov. 9. However, the equity briefly surged into positive year-to-date territory at its early high of $17.22 (breakeven for 2017 stands at $16.85). The shares are now on track to close above their 200-day moving average for the first time since July. 

Checking out the stock's sentiment backdrop, it seems safe to say that a short squeeze is playing out. Short interest decreased by 4.9% during the last reporting period to 5.05 million shares, but still represents a whopping 32% of WATT's total available float. At the equity's average daily trading volume, it would take more than 20 days for the shorts to fully cover their positions.

That said, today's trading volume in Energous stock hardly qualifies as "average." About half an hour into the session, 5.34 million WATT shares have crossed the tape -- which already represents a new 52-week high for share volume.
 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners