When talking about short interest, the 'Days To Cover' is the avg number of days it will take to cover the short position and bring the short interest to 0. But is this figure actually of any use? It is calculated by dividing the short by the avg daily vol to get the # of days. But avg daily vol is not written in stone.
If share prices rise, all shorts can be covered by the short seller immediately, right? If I hold 500 short shares and avg daily vol is 100 shares, that does not mean I am allowed to cover only 100 shares a day. I can buy 500 shares instantly. So is this 'days to cover' really an indicator that a short squeeze will happen?