Applied Optoelectronics Debuts Atop List Of Hottest Short-Selling Ideas

FIS Astec Analytics has released its latest weekly list of the most popular stocks among short sellers.

This week’s list contains some familiar names and at least one new one. Here’s a rundown of the hottest stocks among short sellers.

Top Pick: Applied Optoelectronics

Applied Optoelectronics Inc AAOI made its debut on the hot shorts list after short-selling positions eclipsed 98 percent of available shares. In fact, short sellers have increased their holdings by 760 percent since the beginning of April.

1. Under Armour

Under Armour UAA borrowing costs continue to rise despite the fact that the stock is down $17 from where it was a year ago. Fis Astec reports that every available share of the stock available to borrow is immediately snatched up by short sellers.

2. RH

RH RH has changed its name from Restoration Hardware, but the stock hasn’t changed short sellers’ minds about where its share price is headed. Short interest volumes have stayed at around 100 percent of supply ever since the company’s share price doubled from January to May.

3. Sanchez Energy

Sanchez Energy Corp SN dropped from the top spot on last week’s list, but it remains a favorite among short sellers. Despite an uptick in supply, borrowing costs doubled over the past week.

4. Sears Holdings

It wouldn’t be a true short seller’s list without an appearance from Sears Holdings Corp SHLD. Short interest actually declined 10 percent in absolute volume terms, but only fell 1 percent with respect to available shares.

5. Cara Therapeutics

Cara Therapeutics Inc CARA returns to this week’s list after being absent for two months. The FDA granted one of Cara’s kidney disease treatment a “Breakthrough Therapy” designation, but shot sellers are doubling down on their bets after the stock soared more than 32 percent on the news.

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