Short Squeeze Scan — 2026-07-19
Algolearn.AI July 19, 2026 3 min read 16 views
Squeeze 2026-07-19 · 1 top setup · 1 watchlist · 28 no signal
Automated daily scan of high-short-interest US stocks, scored against a 7-point short-squeeze checklist (the same warning signs that preceded the April 2026 CAR squeeze). Each top setup includes a defined-risk options idea built from live chain data. Not investment advice.
Top setups
SLS (5/7)
SELLAS Life Sciences carries 63.36M shares short (6.7 DTC) and a 13.25% borrow rate into one of the most binary events in biotech: Phase 3 REGAL topline AML data for galinpepimut-S could arrive within days (database lock needs only 2 more events), and simultaneous executive change-of-control contract amendments have ignited credible M&A speculation. The Jul-24 options market prices a 26.7% expected move in 5 days with call IV at 633% vs put IV at 281% on 25-delta strikes — a decisive signal of directional call buying, not hedging. The stock has already rallied +72% from 30-day lows; a positive Phase 3 read or acquisition announcement into a 6.7 DTC short base at 13.25% borrow would likely trigger a cascade of forced covering.
- [FAIL] Short interest > 40% of float: 32.33% of float (63.36M shares short on 185.23M float per highshortinterest.com/MarketBeat as of June 15, 2026) — below the >40% threshold despite reaching an all-time high level
- [PASS] Days to cover > 5: ~6.7 days: 63.36M shares short ÷ ~9.5M avg daily volume (EOD data shows 5–21M daily volume over the 30-day window, avg ~9.5M)
- [FAIL] Tiny free float with institutions locked up: Float 185.23M of 196.63M outstanding; only ~5.8% of shares are locked up by insiders — nearly the entire outstanding float is freely tradeable, no lockup amplifier
- [PASS] Rising borrow costs: Borrow fee rate 13.25% as of June 17, 2026 (GuruFocus), up 0.46pp on the day — significantly elevated for a clinical-stage biotech, indicating tight borrow availability
- [PASS] Near-term catalyst (earnings, FDA, tariff, etc.): Phase 3 REGAL trial for galinpepimut-S (GPS) in AML requires only 2 more events to trigger database lock and topline readout (could be days away); executive change-of-control and severance amendments filed June 24, 2026, with CEO referencing 'strategic partners,' fueling credible M&A speculation; stock surged 12–17% on multiple July dates on this news
- [PASS] Heavy call buying / call skew > put skew: Jul-24 expiry chain (fetched 7/19): call_25d_iv 633.06% vs put_25d_iv 281.15% (skew_pct -55.6% — negative skew means call IV far exceeds put IV); ATM IV 236.03%; ATM call spread 59.65%; 25-delta call at $29 strike has $0/$2.15 bid/ask with IV 633% — aggressive OTM call accumulation ahead of binary catalyst
- [PASS] Price momentum turning up despite heavy short interest: $7.68 close on 6/9 ? $13.19 on 7/17 (+71.7% over 30 days); surged +12% on 7/17 alone on Phase 3/buyout news; sustained volume 5–21M/day vs baseline ~5M, confirming accumulation not just a one-day spike
| Strategy | bull call spread |
|---|---|
| Expiry | 2026-07-24 |
| Legs | long 1x $14 call, short 1x $20 call |
| Cost | $1.10 debit per spread (long leg mid $1.45, short leg mid $0.35) |
| Max risk / reward | $110 per spread / $490 per spread · breakeven $15.10 |
Watchlist
| Ticker | Score | Summary |
|---|---|---|
| GRPN | 4/7 | Groupon's 59.56% SI and 11.28 DTC on a 20.12M-share float are the most compelling structural squeeze conditions in the scan, and the stock has already rallied +81% in 27 trading days. However, two key squeeze accelerants are missing: borrow remains easy at 0.54% (not a pain trade for shorts yet) and the Aug-21 options chain shows put skew (+37.3%) rather than call accumulation, indicating hedgers dominate the options market rather than squeeze-seeking bulls. The August 5 Q2 earnings date is the critical watch point — a positive surprise into a 59% shorted float with 11+ DTC could compress rapidly, but without elevated borrow or call skew confirmation, full squeeze dynamics are not yet activated. |
No signal
BATL, AI, FLWS, SOUN, SPRY, HTZ, EVGO, UPST, LCID, RUN, RXRX, SERV, FLNC, PCT, UONE, INDI, TTEC, HIMS, WGS, XPOF, PLCE, SPHR, XRX, WYFI, ECHO, EOSE, FRMM, NVAX
Generated 2026-07-19 14:56 UTC by the AlgoLearn squeeze scanner. Defined-risk options ideas for informational purposes only — not investment advice.
https://pagerankcafe.com/pressRelease/blog/squeeze-scan-2026-07-19
