25 Stocks With Short Squeeze Potential

• The analysis examines stocks with high short interest as a percentage of float and tracks how much short positions have increased over the past month
• Methodology estimates short sellers' entry prices by averaging stock prices from two weeks before shorts were added over the past year
• Several of the firm's recent options trades have yielded triple-digit returns, including RKLB (+342%), WMT (+300%), and MDT (+218%)

25 STOCKS WITH SHORT SQUEEZE POTENTIAL

Schaeffer's Research has identified 25 stocks with significant short squeeze potential as 2026 begins. The analysis, based on short interest data from December 15, 2025, screens for stocks where short sellers may be facing substantial losses and could be forced to cover their positions.

The methodology examines three key metrics: the percentage of float tied up in short interest, the recent increase in short positions over the past month, and the estimated losses for short sellers. To calculate potential losses, analysts reviewed a year of short interest reports to determine when shorts were added, using the average price from the two weeks prior to estimate entry points.

Notable companies on the list include:

• Oklo (OKLO)
• IREN (IREN)
• Rigetti Computing (RGTI) - highlighted as a quantum computing player

The report comes amid recent market volatility that has created numerous short squeeze opportunities. Many of the identified stocks have been outperformers this year, potentially setting up shorts for additional losses if forced covering occurs.

The analysis includes several assumptions and provides rough estimates of short sellers' underwater positions. Recent trading success examples cited include options trades on Celsius and Palantir that achieved double-digit gains, with other notable winners including RKLB (+342% call option), RCL (+145%), and WMT (+300%).

This screening tool aims to identify stocks where significant short covering could trigger rapid price increases, though the report acknowledges the speculative nature of such predictions.