I have been following Tesla (TSLA) and I think there may be a short squeeze occurring. I was wondering if there are any tell tale signs, for when a short squeeze is occurring?

  • High short interest and high short interest ratio are two measures of a potential short squeeze. A short squeeze is one of those things that you know it when you see it (sharp spike in price and volume). It's not that common in big cap stocks. And FWIW, if the stock has options, you can create a synthetic short position with them if the stock is hard to borrow. Jun 12 '18 at 19:19
  1. If your broker provides details of borrowing cost, those would indicate difficulty in borrowing.

  2. If your broker provides details about how many shares can be located for selling short, decreases may indicate lack of availability of stock.

  3. High levels of open short interest

  4. If you have any shares short, a notification from your broker about a potential buy-in.

  5. A rapid increase in price at the time the buy-in is due.

  • 1
    almost worth keeping 1 share short just to know
    – CQM
    Jun 12 '18 at 19:02
  • @CQM your broker might be able to suggest a better way. They also might not bother with your account if it is only one share... depends on the degree of automation
    – xirt
    Jun 12 '18 at 21:17
  • No need to keep 1 share short. A good broker provides a daily list (and/or quote line) of shares available for borrowing as well as the amount of the borrow fee. Share price increase and volume spikes are readily observable and trackable with price alerts either on a broker's platform or in Excel if there's a DDE connection. Jun 12 '18 at 22:56

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