Clovis Oncology (CLVS) Stock Is Gearing Up For A Short Squeeze

Clovis Oncology Inc (NASDAQ: CLVS) is inching up in the premarket this morning, and while gains aren’t dramatic… yet… the social community is buzzing about the ticker. Ultimately, the retail crowd expects that a major short squeeze is on the horizon, which could become a self-fulfilling prophecy. Here’s what’s going on:

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CLVS Short Squeeze Is Coming

Throughout the beginning of the 2021 year, retail investors have been flexing their muscles, showing institutions that when they band together, they have the buying power it takes to push even the big dogs out of their short positions. In fact, many have already called 2021 the year of the short squeeze. 

Well, the same type of dramatic movement for the top could be just around the corner for Clovis Oncology stock. 

At the moment, the retail crowd is buzzing, pointing to a major opportunity in this relatively small company that’s working to develop therapeutics for patients fighting cancer. 

In fact, all over social media, we’re seeing posts that point to incredibly high short interest on the stock. Shorts are making up about 27% of trades as we speak. Of course, should the retail community begin pushing shares upward, there’s a huge opportunity for significant gains as the shorts who hold these positions race to cover. 

To put it into perspective, the stock trades with a public float of around 101 million shares. If 27% of these shares are shorted, that means that more than 27 million shares are being held short at the moment. 

Of course, if CLVS begins to tick upward, and the majority of shorts decide to cover their positions, 27 million shares will need to be purchased. Considering the fact that the stock market is a system built around the law of supply and demand, and such tremendous demand could be the result of retail investors pushing for a short squeeze, the stock could easily double in value, if not more, if retailers are successful. 

Will Retailers Successfully Force A Short Squeeze On CLVS?

In my opinion, the answer is a resounding yes!

The fact of the matter is that social volume is picking up in a big way, as we’ve seen with other short squeeze targets from retail traders. When this happens, a short squeeze generally takes place within three trading sessions of the action. 

Not to mention that the retail community has picked up much bigger targets in the past. Think about it, if these guys can force a short squeeze on GameStop, BlackBerry, and Bed Bath and Beyond, they should have no problem doing the same with a relatively small oncology company. 

So, the question isn’t whether or not a short squeeze is going to happen, it’s a question of when the squeeze will take place. 

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Final Thoughts

If you’re investing in CLVS, hold onto your hat and gear up for a sharp run for the top as the retail community continues to pile in. If you’re not there yet, you may want to seriously consider jumping in before the squeeze starts. This type of move has a history of making millionaires. 

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