ORTEX Short Interest Insights from October


October proved to be a volatile month, with the major indexes breaching the June lows to set fresh year-to-date lows before staging a strong rebound to finish the month higher. Short interest changes across the S&P 500 sectors were mixed. The biggest decline in short interest was within the energy sector, which saw a 13.8% decline in short interest shares to 390.8 million. Consumer discretionary stocks saw the largest increase in bearish sentiment, with short shares rising 2.8% to 875.8 million.

Here are ORTEX’s estimates for how aggregate short interest (SI) shares changed for each S&P 500 sector for the month of October.

Sector Starting SI Shares Ending SI Shares % Change
Energy 453,421,755 390,804,502 -13.8%
Materials 198,825,390 202,916,356 2.1%
Industrials 474,233,348 445,679,740 -6.0%
Consumer Discretionary 851,614,169 875,836,618 2.8%
Consumer Staples 363,768,324 339,081,684 -6.8%
Health Care 485,724,406 458,619,716 -5.6%
Financials 601,749,134 613,464,462 1.9%
Information Technology 866,702,674 854,171,759 -1.4%
Communication Services 750,881,021 765,851,948 2.0%
Utilities 224,480,830 213,084,355 -5.1%
Real Estate 277,672,665 275,566,617 -0.8%


As the S&P 500 advanced throughout the back half of October, short sellers started to accumulate heavy losses. The bears ended up losing an aggregate $37.07 billion for the entire month.

Top Short Seller Gain and Loss for October

Of the major tech stocks that reported earnings last week, only Apple (Nasdaq: AAPL) was able to deliver solid results that reassured investors and sent the stock higher. With 900 million paid subscriptions across its entire Services business, the Cupertino-based tech giant earned investor confidence that its business will be resilient in the face of macroeconomic headwinds. Apple bears incurred total losses of $1.62 billion for the month.

On the other end of the spectrum, Tesla (Nasdaq: TSLA) delivered the most profits to short sellers during the month of October. The electric vehicle (EV) leader missed revenue expectations in the third quarter, even as sales set a new quarterly record. CEO Elon Musk closed his acquisition of Twitter last month, which is also fueling fears around how foreign governments could leverage speech regulations around the newest entrant into the Elon Musk Cinematic Universe in ways that could potentially impact Tesla. Tesla shares are trading near 52-week lows, with short sellers enjoying $2.5 billion in gains for October.

Short Squeeze Candidates with the Highest ORTEX Short Scores

In terms of the top short squeeze candidates as of right now, here are the 10 stocks that have the highest ORTEX Short Scores on our platform. Our ORTEX Short Score uses a multi-factor model that incorporates multiple short-related metrics, with a higher score indicating that the stock is heavily-shorted and has other characteristics that increase the possibility of a short squeeze occurring.

Ticker Stock Market cap USD Industry Short Score Estimated Short Interest % FF
BEEM Beam Global $116,603,741 Capital Goods 95.29 21.50
BYND Beyond Meat $988,123,138 Food, Beverage and Tobacco 93.80 41.86
CLNN Clene Inc. $64,137,003 Pharmaceuticals, Biotechnology and Life Sciences 93.72 18.58
CRCT Cricut $2,024,099,820 Consumer Durables and Apparel 93.62 20.03
DNMR Danimer Scientific $247,881,369 Materials 93.33 22.69
EVGO EVgo $518,780,165 Retailing 93.28 30.98
TTCF Tattooed Chef $389,210,270 Food, Beverage and Tobacco 93.05 33.85
LOCL Local Bounti Corporation $298,393,114 Food, Beverage and Tobacco 93.02 10.31
FSR Fisker Inc. $2,323,923,336 Automobiles and Components 92.80 35.32
VORB Virgin Orbit Holdings $978,664,510 Capital Goods 92.75 11.72


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