(NKLA) - Nikola Corporation - Common Stock's Short Interest Down 12%

What happened: Nikola Corporation - Common Stock's NKLA short interest has fallen 12% since they last reported. The company recently reported that it has 51 million shares sold short, which is 25.71% of all regular shares that are available for trading. At its current trading volume, it would take traders 4.6 days to cover their short positions on average.

Why it matters: Short interest is the number of shares that have been sold short but have not yet been covered or closed out. Traders make money from a short position if the price of the stock falls and they lose if it rises. Falling short interest can be a sign that the market is more bullish on a stock.

In Nikola's case, the number of shares sold short has decreased 12% since their last report. This could be a sign that the market is becoming more bullish on it.

Follow the most shorted stocks here.

Short Interest reports are issued twice a month by the Nasdaq exchange, so a company's short interest can change between reports and usually the reports are delayed. Also, it's important to remember that experienced traders do not base their trading decisions off one signal alone. However, short interest can be a useful signal in a trader's toolbox.

This article was generated by Benzinga's automated content engine and was reviewed by an editor.