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Glossary of Option Terms: Short-Squeeze
Short-Squeeze
Definition: Occurs when those who sold a company’s shares short (hoping they would go down in price) are unable to buy back enough shares quickly enough to cover their positions as the shares move up in price.
Out of desperation, and to limit losses, they buy shares at any price to cover their positions, creating artificially induced demand on a micro-cap stock and sending the shares to the moon.
Think about trying to squeeze a herd of elephants into an elevator - the explosion is waiting to happen.
Related Articles:
- The Short Squeeze: Don’t Get Squeezed When Investors Rush to Sell!
- My Kingdom for An Option
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