Popular Drinkware Stock Ripe for Short Squeeze

Earlier this month, the shares of drinkware name Yeti Holdings Inc (NYSE:YETI) pulled back to their 12-month moving average, near the $82 area. Now, the stock has reclaimed the $90 level, which is five times its initial public offering (IPO) price. Moreover, Yeti's strong brand name and ability to push through potential price increases amid global supply chain issues make now an especially attractive time to speculate on the security’s next move higher.
 

 
Short sellers have been piling on the stock, leaving it ripe for a short squeeze. Short interest added 20% since July, and now makes up 7% of the security’s available float. It would take over seven days for traders to buy back their bearish bets, at Yeti stock's average daily pace of daily trading. Our February call sports a leverage ratio of 5.4 and will move to double on a 19.2% rise in the underlying security.