Short interest (% of float)
Short %
What it is
Percentage of float (shares available to trade) sold short. A 15% short interest means 15% of available shares are borrowed by sellers betting on a decline.
How to read it
High short interest (>20%) signals either sophisticated investors anticipating a drop (strong bearish thesis), or possible short squeeze if news turns positive. Above 30%, the stock becomes explosive in both directions.
Common reference points
- Low — little market doubt< 5%
- Moderate — normal5 – 10%
- High — caution10 – 20%
- Very high — risk or squeeze> 20%
Orders of magnitude, not a rule: the same number does not mean the same thing from one sector to the next.
What it does not tell you
Short interest is published with 15-30 days of lag and doesn't always reflect the current position. High short interest can signal a sound bearish thesis, or contrarian sentiment — both stories are possible, dig deeper.
Other measures — Positioning
Educational content. Polaris is not a registered investment adviser and makes no recommendation.