Buy This Short Squeeze Stock Today for Double-Digit Profits

Five-hundred and three percent on AMC Entertainment Holdings Inc. (NYSE: AMC)... 94% on GameStop Corp. (NYSE: GME)... 221% on Clover Health Investments Corp. (NASDAQ: CLOV)... Retail investors and traders are just raking it in.

My Super Squeeze Profits readers following along have had the chance to close out two 100% winners and a 313.7% winner on some options I recommended to them in late April.

These are just some of the most recent monster gains generated by the short squeeze - hands-down, it's the markets' hottest trade right now.

But... you can't just pick a stock and expect huge profits to follow; it can be tough for regular investors to figure out which stocks are great short-squeeze candidates with triple-digit profit potential.

I've got you covered, though; there's one stock on my screen right now that's looking good. Really good...

This Stock Could Take Off as Soon as This Week

Now, it's tough to say exactly how much hedge funds and institutions have lost to regular retail investors in these huge squeezes since late January, but I think a good, rough guesstimate would start well north of $20 billion.

All that said, Wall Street has not learned its lesson - good thing, too. Institutions are still shorting stocks left and right... and getting killed doing it. A couple of tweaks to my proprietary S.C.A.N. algorithm have helped me isolate what I think are the two best signs of an explosive short squeeze.

Some of the bigger, more famous squeezes out there right now, like GameStop and Clover, are a little on the crowded side; I think there will be more "rounds" of moneymaking there, though, and I'll get in touch when I think the time is right.

For now, though, S.C.A.N. and I really like the way Weibo Corp. (NYSE: WB) is looking.

Some folks call Weibo "the Twitter of China" - it's one of China's biggest social media players and a leader in "microblogging" over there.

Chinese firms tend to attract a lot of short-sellers' attention because of American and Indian crackdowns on Chinese companies, and Chinese crackdowns on Internet activity. The company keeps on trucking though, with more than 445 million users - much more than the population of the United States.

But as I've said, right now, the fundamentals aren't as important as what's actually happening with the stock. It's an interesting setup.

The last data published by Nasdaq shows that around 12.54 million shares of WB are actually being shorted right now. Short interest was down just slightly since the previous reporting period, but overall, short interest has climbed by nearly 65% since January 2021. Its short interest ratio is 8.1, which isn't the most important signal I look at, but it's good confirmation that this stock is absolutely ready for an explosive move higher should it rise and the short-sellers have to scramble to cover those positions.

Bad news if you're a hedge fund, great news if you're a retail trader or investor. I think the shorts could move to throw in the towel at $60 or a little higher, which would be more than 25% from Friday's midday price - that gain would be nice enough, but if you were long, whether with call options or selling puts, instead of simply buying it, you could easily double your money or better as the "super squeeze" takes hold.

Every Monday, I hit my Super Squeeze Profits readers up with a "watch list" of stocks - short squeeze candidates - that S.C.A.N. has hit on recently. These are stocks I think could potentially be ready for a big, fast move higher, and when I see conditions are right, I go out to my readers with a trading research recommendation - option ticker, entry, exit, and everything they need to know to get a shot at a big win. You can learn about how it works right here.

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Andrew Keene

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Andrew Keene is a globally known trader and a renowned expert on all things options.

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