BridgeBio Pharma Inc (NASDAQ:BBIO) stock pulled back sharply from its Jan. 22 record high of $81.33, marking a three-month low after Pfizer withdrew a tafamidis patent in the European Union (EU). Shares were last seen up 5.2% to trade at $71.57 today, however. Given layers of technical support, including the ascending 100-day moving average, the stock is still showing solid strength.According to Schaeffer's Senior Quantitative Analyst Rocky White, BBIO is within 0.75 of its 100-day moving average's 20-day a ...

Core Viewpoint - Wall Street traders are increasingly optimistic about Warner Bros. Discovery (WBD) being sold to Netflix, with a significant reduction in short interest in the stock, indicating a shift in sentiment towards the company's future prospects [1][6]. Group 1: Short Interest Trends - WBD had experienced a rise in short interest throughout the year, making it one of the most heavily shorted entertainment stocks [2]. - Short interest has decreased from 6% in July to just 3% of the float, with traders covering approximately 30 million shares over the past month [7]. Group 2: Company Performance and Strategy - Under CEO David Zaslav's leadership, WBD has made significant improvements, including making HBO Max profitable, producing successful films, and reducing debt [5][6]. - The company's stock price has recovered from near penny stock levels to around $12, reflecting improved investor confidence [6]. Group 3: Regulatory Considerations - Despite the positive sentiment, there are concerns regarding the regulatory approval process for the potential sale to Netflix, which could take up to two years [8][10]. - Officials in the EU and UK are also expressing concerns about Netflix's market power, which could impact the deal's timeline and lead to a resurgence in short interest if delays occur [11].

“...narrow breadth has long been a concern of market participants as a sign of a potential retreat in stocks. To the extent those same participants were short lagging names or sitting on the sidelines, the rotation caught them flat-footed. This is potentially bullish as improving breadth moves bears off the sidelines or short covering occurs among those playing the narrow breadth theme… the RUT all-time high combined with a multi-year high in short interest on its component stock is bullish, unless and unti ...

Short interest has more than doubled over the past month and is sitting near one-year range highs, where we’ve seen buys work out over the subsequent months.Options are affordable, per the stock’s Schaeffer’s Volatility Index (SVI) reading of 66%, which ranks in the 29th annual percentile. Plus, this is a name you’d rather own with rising implied volatilities (IV) than a low IV, as that often has indicated chop of a bull trap.Our recommended March call has a leverage ratio of 5.3 and will double on a 22.3% ...

Group 1 - Allegiant Travel Company (ALGT) is acquiring budget airline Sun Country Airlines (SNCY) for $1.5 billion, or $18.89 per share, with the deal expected to close in the second half of 2026 [1] - Following the acquisition news, ALGT's stock fell by 3.9% to $91.24, marking its worst single-day percentage loss since November, despite a 101.6% gain over the past nine months [1][2] - The stock reached its highest level since February before the decline, bouncing off long-term support at the 20-day moving average [2] Group 2 - ALGT's 10-day call/put volume ratio is 7.38, indicating a higher level of bearish sentiment among options traders compared to the past year, with short interest at 9.9% of the available float, despite a 24% decrease in the last two reporting periods [3] - Options are currently affordably priced, with a Schaeffer's Volatility Index (SVI) of 57% in the 20th percentile of annual readings, suggesting potential for stock performance exceeding volatility expectations [4] - The stock has a Schaeffer's Volatility Scorecard (SVS) of 90 out of 100, indicating a strong historical performance relative to volatility expectations [4]

Group 1 - Short interest in U.S. President Donald Trump's social media company has increased significantly following a recent merger announcement, indicating that some traders anticipate a decline in the stock's recent gains [1]

Core Viewpoint - UiPath Inc. is set to join the S&P MidCap 400, leading to a 5.6% increase in its share price to $16.81, as it replaces Synovous Financial, which is being acquired [1] Group 1: Stock Performance - The stock is currently supported at the $16 level, following a pullback from its year-to-date high of $19.84 on December 8 [1] - UiPath has shown a 36% lead for 2025 and has increased by 54% over the last nine months [1] Group 2: Short Interest and Market Sentiment - Short interest in UiPath remains high, accounting for 11.5% of the total available float, with a 15.3% increase in the last two weeks [2] - The majority of brokerage firms are skeptical, with 18 out of 19 firms maintaining a "hold" or worse rating [2] - Short-term options traders are exhibiting more bearish sentiment, as indicated by the low Schaeffer's put/call open interest ratio [2] Group 3: Options Activity - Today's options trading shows a significant increase in call options, with 70,000 calls traded, which is double the intraday average volume, compared to only 10,000 puts [3] - The most popular options contract is the January 16, 2026, 20-strike call [3]

Core Viewpoint - The market is currently cautious as the SPX approaches potential resistance levels, with a 25-basis point rate cut already factored in by investors [1][3]. Market Performance - The SPX closed at 6,827.41, marking a historically weak seasonal period for the index, with the first half of December averaging a -0.07% return over the past 50 years [2]. - Notable winners in the market included silver, gold, industrials, and financials, while technology stocks, particularly Oracle and Broadcom, experienced declines due to poor earnings reactions [1]. Seasonal Trends - Historically, the second half of December is the strongest period for the SPX, averaging a 1.30% increase, with positive returns occurring about 75% of the time [4]. - If the SPX closes at 6,764.00 or higher, it is likely to see a continuation of this trend, with an average return of 1.86% into the end of the year [4]. Investor Sentiment - There is a significant short interest in SPX components, which could provide future buying power and support during pullbacks [10][13]. - Active investment managers are currently fully invested, which may limit their ability to provide support in the near term [10][16]. Resistance Levels - The SPX must break through established resistance around the 6,900 mark to trigger major short covering and facilitate a rally [14]. - The market has struggled to regain momentum since closing below the bottom rail of a bull channel in mid-November [6][16].

Core Viewpoint - Clear Secure has a clear path to growth in the near future, as indicated by a significant stock price increase following an upgrade from a top bank [1]. Company Summary - Clear Secure's share price surged by over 13% to $41.19, driven by an upgrade from J.P. Morgan [1][5]. - J.P. Morgan analyst Cory Carpenter upgraded Clear Secure's rating to overweight (buy) from neutral and raised the price target by 20% to $42 per share [2]. - The company has the highest short interest in J.P. Morgan's coverage universe, which may be influenced by its partnership with American Express, set to expire in June 2026 [4]. Industry Summary - Factors such as the upcoming 2026 World Cup are expected to drive revenue for the broader travel industry, which will ultimately benefit Clear Secure [6]. - The travel sector is anticipated to experience growth next year, aligning with Carpenter's optimistic outlook for Clear Secure [6].

Core Insights - Short interest data provides insights into investor sentiment and potential risks in the stock market, helping gauge market confidence in a company's future [1] - A stock is deemed heavily shorted when a significant percentage of its available shares are borrowed and sold by investors anticipating a price drop [2] - Short squeezes can occur when short-sellers rush to cover their positions, leading to rapid price increases, as seen in recent meme stock manias [3] Short Interest Overview - The most heavily shorted stocks as of November 13 include Lucid Group, Inc. (48.99%), Choice Hotels International, Inc. (46.71%), and Avis Budget Group, Inc. (46.13%) [5] - Stocks are ranked by short interest, which is the total number of shares sold short and not yet covered, expressed as a percentage of shares available for public trading [4] Market Dynamics - Highly shorted stocks represent a battleground where negative fundamentals meet speculative trading [7] - Monitoring short interest can help identify potential short squeeze candidates, although timing such trades is challenging due to high volatility [7]