40% Short Interest Made Me Forget I Was Sick
When the short float hits 40%, I stop asking “Why” and start asking “How Much.”
Look, I was groggy as heck from doctor’s medicine on Friday, barely functioning, and even in that state one number made me sit up straight: Beyond Meat’s (BYND) 40% short float.
That’s not a red flag – that’s a neon sign flashing “EXPLOSION IMMINENT.”
Most traders see a beaten-down stock like BYND trading at $2.60ish and think “dead money.” I see 40% of the float sitting short and think “powder keg.”
Because when shorts get squeezed on a name this heavily shorted, the move isn’t gradual. It’s violent.
The Setup That Made Me Forget I Was Sick
I’m scanning my watchlist, feeling terrible, and BYND starts moving. Volume’s exploding. I check the short float: 40%.
Holy smokes, that’s crazy.
For context, anything over 20% short float gets my attention. Over 30% and I’m hunting entries. But 40%? That’s “wow” territory where even a small catalyst can create chaos.
My Lotto Entry Strategy
Here’s how I play it: I look for calls “ATM” or slightly “OTM”, depending on the price really. But the key is focusing on weekly options. These offer the most explosive opportunity.
Yes, they are riskier, but the way I manage risk is by allocating just a small amount of money.
Even a modest squeeze from $2.60 to $4 or $5 creates massive percentage gains on calls.
The Short Squeeze Playbook
Verify the short float percentage:
- Under 15%: Skip it
- 25-35%: High potential
- Over 35%: Prime squeeze territory
Look for the catalyst – technical breakout, volume surge, sector momentum. There is no real catalyst right now except that a lot of these out-of-favor stocks have been pumping lately, think OPEN and JMIA as examples.
By 12 pm ET yesterday there were over 36K calls traded on the weekly $3 strike.
Position size appropriately – this is lotto money. Risk what you can afford to lose completely.
The Psychology of 40% Short Float
Think about this: 40% of BYND’s available shares are borrowed by traders betting the stock goes lower. When the stock starts moving against them, they cover. Fast.
When 40% of the float needs to buy shares simultaneously, price explodes higher.
Your Action Plan
You’re not trying to predict the future. You’re positioning for chaos.
When the short float hits extreme levels like 40%, supply and demand dynamics take over. Risk small. Think big. Position early.
Stop asking why the stock is beaten down and start asking how much you’re willing to risk on the inevitable snapback.
Want to master these exact lotto setups?
I’m hosting my 10X Lotto Trade Summit this Wednesday, August 27 @ 2 p.m. ET where I’ll be making one of these trades LIVE and showing you how I’ve turned trades under $2 into gains of 500%, 823%, and even 1,127% within days or hours.
Because when Goldman Sachs says we’re in a record “speculative trading frenzy,” that’s when these lotto plays deliver their biggest returns. And I’ll show you exactly how to position for the next one.
