Short Squeeze Scan — 2026-08-09
Algolearn.AI August 9, 2026 4 min read 8 views
Squeeze 2026-08-09 · 2 top setups · 2 watchlist · 26 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
HTZ (6/7)
HTZ is executing an active, confirmed short squeeze driven by a Q2 2026 earnings beat (+9.7% revenue YoY, released Aug 6) colliding with 73.85% short float, 10.57 DTC, and 95% utilization. Volume exploded to 224.7M shares on Aug 7 — roughly 10x the 30-day average — lifting the stock +45.5% off its $1.56 low. Borrow costs (~300 bps) continue to rise as the lendable pool shrinks; Benzinga confirmed 'Hertz Short Squeeze is On.' The squeeze is in progress but defined-risk structure is warranted given extreme intraweek volatility.
- [PASS] Short interest > 40% of float: 55.85% SI of float per highshortinterest.com (authoritative); EquiLend/QuiverQuant data shows SI has risen to 73.85% in the most recent settlement — well above the 40% threshold
- [PASS] Days to cover > 5: 10.57 days to cover confirmed (AltIndex/Fintel); utilization held above 90% since Jul 21 and reached 95% as of Aug 5; lendable pool contracted 10% day-over-day to 107.9M shares
- [FAIL] Tiny free float with institutions locked up: Float 169.11M out of 315.76M outstanding = 53.5% free float; ~46% locked — does not meet the >75% institutional lockup threshold
- [PASS] Rising borrow costs: Borrow rate approaching 300 bps (~3% annualized) with 95% utilization and a shrinking lendable pool per EquiLend; markedly elevated vs. <50 bps for normal liquid names
- [PASS] Near-term catalyst (earnings, FDA, tariff, etc.): Q2 2026 earnings reported Aug 6 (intraday): revenue $2.40B, +9.7% YoY, beat consensus — directly ignited the squeeze run; social mentions hit 1,200 in 24 hrs = 42x the 5-day average
- [PASS] Heavy call buying / call skew > put skew: Aug-14 chain (underlying $2.09): call 25d IV 4.496 vs put 25d IV 1.813, call skew -59.7%; ATM call mid $0.390 vs ATM put mid $0.135; call-side premium 2.5x put-side — aggressive directional call buying
- [PASS] Price momentum turning up despite heavy short interest: Price surged from $1.56 (Aug 3 close) to $2.27 (Aug 7 close) = +45.5%; volume 135.3M shares Aug 6 and 224.7M shares Aug 7 — both approximately 10x the prior 30-day average of ~20M/day
| Strategy | bull call spread |
|---|---|
| Expiry | 2026-08-14 |
| Legs | long 1x $2.00 call, short 1x $2.50 call |
| Cost | $0.155 debit per spread (long $2.00 call mid $0.390 minus short $2.50 call mid $0.235, per chain at underlying $2.09) |
| Max risk / reward | $15.50 per spread / $34.50 per spread · breakeven $2.155 |
SOUN (5/7)
SOUN hit the textbook squeeze template: a 13% borrow rate and 89% utilization cornered shorts exactly as Q2 earnings delivered a +45% YoY revenue beat on Aug 5, igniting a breakout from $6.43 to $8.02 (+24.7%) on 88M and 65M volume days. The options market is pricing near-zero put premium against 496% IV call-side premium (skew -94.6%), confirming one-way squeeze risk to the upside. At 5.8 DTC with a shrinking borrow pool, forced covering could extend if the stock holds above $8.
- [FAIL] Short interest > 40% of float: 38.35% SI of float per highshortinterest.com (authoritative for this criterion); web sources cited 43% pre-earnings suggesting some covering occurred; narrowly below the 40% threshold in the weekly refresh
- [PASS] Days to cover > 5: 5.8 days to cover confirmed (Simon Erickson/X post dated ~Aug 4, corroborated by Cryptonomist article Aug 6); 89% utilization with 'hardly any shares available to borrow'
- [FAIL] Tiny free float with institutions locked up: Float 393.21M out of 403.14M outstanding = 97.6% free float; large liquid float means no float-constraint amplification
- [PASS] Rising borrow costs: 13% annualized cost to borrow confirmed (X/7Innovator post pre-Aug 5 earnings); 89% utilization — among the highest borrow rates in the universe at time of the squeeze
- [PASS] Near-term catalyst (earnings, FDA, tariff, etc.): Q2 2026 earnings reported Aug 5 after close: record revenue $61.9M, +45% YoY, full-year guidance raised — stock gapped +13% in after-hours and continued squeezing Aug 6-7
- [PASS] Heavy call buying / call skew > put skew: Aug-14 chain (underlying $6.54 at snapshot): call 25d IV 2.322 vs put 25d IV 0.125, call skew -94.6% (extreme); ATM call mid $1.515 vs ATM put mid $0.020 — puts priced near-zero while calls carry massive premium; ATM IV 496% annualized
- [PASS] Price momentum turning up despite heavy short interest: Price broke from $6.43 (Aug 5 close) to $8.02 (Aug 7 close) = +24.7% in 2 sessions; volume 88.6M shares Aug 6 and 65.0M Aug 7 vs 30-day avg ~32M — clear squeeze breakout on volume confirmation
| Strategy | bull call spread |
|---|---|
| Expiry | 2026-08-14 |
| Legs | long 1x $7.50 call, short 1x $9.00 call |
| Cost | $0.55 debit per spread (long $7.50 call mid $0.645 minus short $9.00 call mid $0.095; chain captured at underlying $6.54 — actual market prices will be higher with stock near $8.02) |
| Max risk / reward | $55.00 per spread / $95.00 per spread · breakeven $8.05 |
Watchlist
| Ticker | Score | Summary |
|---|---|---|
| AI | 4/7 | C3.ai combines a confirmed 10.55 DTC with a Sep 2 earnings catalyst and aggressive call-side options activity (skew -72.6%, heavy OTM call buying flagged by multiple analysis sources). The price has rallied +25% from the Jul 24 low in a disciplined uptrend. Borrow rate is unconfirmed, preventing top-setup status, but the conjunction of high DTC, approaching catalyst, and unusual call positioning warrants monitoring. |
| WGS | 3/7 | WGS delivered a powerful catalyst trifecta on Aug 3 (strong Q2 earnings, Blackstone strategic investment, analyst PT raise to $85) that drove a 34% surge in under 2 weeks on 4x average volume. With an estimated 9.6 DTC against a tiny 16.94M float, any continued institutional accumulation could force rapid covering. Lacks confirmed elevated borrow rate and call-skew options signal to qualify for top-setup status. |
No signal
GRPN, SPCE, BATL, NEGG, LCID, FLWS, WYFI, FLNC, EVGO, RXRX, PCT, PLCE, SLS, INDI, SERV, UPST, SPRY, KRUS, XRX, HIMS, XPOF, SRPT, RUN, BBAI, CRML, SPHR
Generated 2026-08-09 14:55 UTC by the AlgoLearn squeeze scanner. Defined-risk options ideas for informational purposes only — not investment advice.
https://pagerankcafe.com/pressRelease/blog/squeeze-scan-2026-08-09
