After one of the most violent and memorable
Learning From DryShips
Following the DryShips reality check, short squeeze traders may be shifting their attention to a new target on Monday: LendingClub Corp
Short Sellers' Nightmare: The Buyout
A buyout can be a short seller’s worst nightmare. No matter how well-researched a company is or how confident a short-seller is in the negative fundamentals or technical momentum of a stock, buyout rumors are always a dangerous wildcard.
LendingClub is one of the most popular shorts in the market today at about 17 percent short interest. Short sellers have piled on as the company’s revenue, earnings and share price
However, as DryShips taught short sellers the hard way, a surprise bullish catalyst for a heavily-shorted stock can be the recipe for a short squeeze explosion that can make or lose a fortune in a matter of days. Traders will likely be keeping a close eye on LendingClub for the time being.
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