SDC: Smile Direct Club Background:
– SDC Stock has been volatile and it’s up 30% in a trading week. The amount of shares available to borrow has been incredibly low for the short-sellers. When the demand goes higher, the price of the stock also goes higher. Due to the sudden increase in stock price, the borrow fees also start to go higher and cost more to borrow.
Borrowing stocks or also known as shorting a stock can be a risky trade since there is no limit on how high the stock could go. When the stock price keeps going higher, the premium to borrow and interest fees also starts to climb higher rapidly. Shorting a stock means, you are betting a stock will go down by the expiration date and you promise to give back the stock you borrowed.
The worst thing that can happen is if the stock price goes against you, and keep going higher, the broker can ask you to cover the short and give back the shares you borrowed. This also means bad for the margin accounts since you will be paying higher interest and margin calls.
SDC stock is showing the same pattern of Short Squeeze potential due to the high amount of stocks that was shorted. Long-term investors, who believed in the business and fundamentals, will definitely be rewarded with an increase in the stock price.
SDC STOCK PRICE
|Short Interest||34,238,580 shares|
|Short Interest Ratio||0.94 Days to Cover|
|Short Interest % Float||34.49%|
There are about 150,000 shares available to borrow since our last update.
Short Borrow Rate
The short borrow rate more than double last Friday, September 17, 2021.