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Short squeeze
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===Targets for short squeezes=== Short squeezes are more likely to occur with listed stocks with relatively few traded shares and commensurately small [[market capitalization]] and [[float (finance)|float]]. Squeezes can, however, involve large stocks and billions of dollars. Short squeezes may also be more likely to occur when a large percentage of a stock's float is short, and when large portions of the stock are held by people who are not tempted to sell.<ref>{{Cite web |title=Short Squeezes |url=https://www.investorsunderground.com/short-squeezes/ |url-status=live |archive-url=https://web.archive.org/web/20180808043423/https://www.investorsunderground.com/short-squeezes/ |archive-date=8 August 2018 |access-date=11 November 2016 |website=Investors Underground}}</ref> Short squeezes can also be facilitated by the availability of inexpensive [[call option]]s on the underlying security because they add considerable leverage. Typically, [[out of the money]] options with a short time to expiration are used to maximize the leverage and the impact of the squeezer's actions on short sellers. Call options on securities that have low [[implied volatility]] are also less expensive and more impactful. (A successful short squeeze will dramatically increase implied [[volatility (finance)|volatility]]).<ref>{{Cite web |title=Options Helped Fuel the GameStop Stock Squeeze. Here's How That Works. |url=https://www.barrons.com/articles/options-helped-fuel-the-gamestop-stock-squeeze-heres-how-that-works-51611872643 |url-status=live |archive-url=https://web.archive.org/web/20210424180649/https://www.barrons.com/articles/options-helped-fuel-the-gamestop-stock-squeeze-heres-how-that-works-51611872643 |archive-date=24 April 2021 |access-date=6 June 2021 |website=Barron's}}</ref>
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