Under the current market regime, rising short interest always attracts eyeballs. In theory, an accumulation of bearish pressure represents an awful harbinger for the targeted security. However, these short traders risk the underlying asset moving in the wrong-to-them direction, which is northward. Interestingly, though, relatively very few speculators want a piece of the short action against Strategy Inc (NASDAQ:MSTR). For contrarian investors, this dynamic could be a compelling opportunity.
Usually, the prospect of short squeezes offers an intuitive argument for bullish speculators. Under a typical transaction, investors initiate a position in a security by buying to open. However, short traders initiate their speculative activity by selling to open. These shares were first loaned out by a broker, which means that at some point, bearish speculators must return the borrowed securities.
