At this point, many investors have heard of the Reddit channel Wallstreetbets (WSB). But if you haven’t, here’s what you missed:

• WallStreetBets is a subreddit channel, a subreddit channel is an online group, or community, on the social media website Reddit. 
• Most likely, if you have heard of WallStreetBets it is because of the recent news headlines featuring the online channel and GameStop (NYSE:GME)
• A WSB author/member decided to disrupt the status quo (a high short interest, described below, in GME) by writing a post outlining a strong case for buying the stock. Investors followed the recommendation and the stocks price soared from $19.79 to a high of $458 in just over a week.

Investors who bought in early had an amazing opportunity to profit, as long as they didn’t wait until now to sell.

Want to Get in on the Next WallStreetBets Short Squeeze?

First, it is important to understand the criteria WallStreetBets members look when searching for the next “YOLO” (You Only Live Once) stock.


Really it comes down to two main aspects.

Number one, they look for high short interest – meaning lots of other investors are betting against the stock and have borrowed shares to do so.

This is because WSB members know that with high short interest eventually comes high short covering.

Short covering is when a short seller has the buy back the stock they borrowed to close out their position.

This forced buying is a desired situation for investors looking to make money from a short squeeze because if the price of a stock with significant short interest starts to rise in price, short sellers will have to buy it to cover their short position.

This can create a sharp spike in the stock price.

Next, WallStreetBets members look for available call options, preferably deep out of the money call options, because they love the leverage.

Here’s how it works.

While an investor only needs to buy $100 of call options, the market maker (typically, a big institution) who sold the options needs to buy significantly more than $100 of the stock to hedge themselves.

This buying by the market maker drives up the price of the stock which is favorable for the investor holding call options.

The more options WSB buys, the more demand is created by market makers buying stock, the more the stock goes up in price … rinse, repeat.

And if this is a stock with lower liquidity, the price increase can be dramatic (case in point – GameStop).

Let’s Apply this Criteria to Find the Next WSB Target

Our process of screening for the next WSB target includes (as described above) screening for companies with high short interest as a percentage of free float and out-of-the-money call options. 

Start by searching for North American stocks where more than 23% of the current free float has been shorted.

Next and just as important we want a stock that hasn’t already run, or gone up dramatically in price. 

A recent price spike may signal the Wallstreetbets crew has already found the stock.

We want to find stocks with the potential for a short squeeze but where the actual stock price hasn’t moved much yet.

If you see a big run and fall off in the stock price chart within the last month or two, move on to another name. 

And lastly, the stock needs to have available call options.

Look at the open interest (# of options already outstanding).

A large and growing open interest coupled with a stock price that isn’t up that much is the ideal situation we are looking for. 

Next, search for call options of those stocks; focusing on far out-of-the-money call options with a low probability of being exercised.

We also are only looking for options that expire soon. 

Soon to expire options give Wallstreetbets members the most leverage for the least amount of money and they love them. 

Put It All Together and What Do You Get?

Top 25 companies with Highest Short Interest

Ticker Name Short Interest % 1 Month Return
GOGO   GOGO INC 44% 40%
GME   GAMESTOP CORP-CLASS A 43% 48%
SKT   TANGER FACTORY OUTLET CENTER 41% 13%
DDS   DILLARDS INC-CL A 40% 24%
LGND   LIGAND PHARMACEUTICALS 39% 40%
ESPR   ESPERION THERAPEUTICS INC 37% 17%
SUMO   SUMO LOGIC INC 36% 29%
CLVS   CLOVIS ONCOLOGY INC 36% 42%
FIZZ   NATIONAL BEVERAGE CORP 35% 24%
ROOT   ROOT INC/OH -CLASS A 34% 2%
ASO   ACADEMY SPORTS & OUTDOORS IN 34% 15%
AXDX   ACCELERATE DIAGNOSTICS INC 33% 47%
AMCX   AMC NETWORKS INC-A 32% 18%
IEA   INFRASTRUCTURE AND ENERGY AL 32% -12%
SPWR   SUNPOWER CORP 32% 56%
ZYXI   ZYNEX INC 31% 18%
RKT   ROCKET COS INC-CLASS A 31% 6%
TR   TOOTSIE ROLL INDS 31% 3%
GTT   GTT COMMUNICATIONS INC 30% 19%
TRIT   TRITERRAS INC-CLASS A 30% -3%
FLGT   FULGENT GENETICS INC 30% 128%
DISCA   DISCOVERY INC – A 29% 30%
VXRT   VAXART INC 29% 18%
PGEN   PRECIGEN INC 29% 4%
OTRK   ONTRAK INC 29% 26%

Top 25 Options with Largest Open Interest (most available options)

Ticker Expiration Strike Price Days to Expiration Open Interest
TRIT  02/19/21 $15 4 15,288
TRIT  02/19/21 $13 4 12,988
GME  02/19/21 $800 4 10,666
TLRY  02/19/21 $65 4 8,967
MAC  02/19/21 $25 4 8,602
MAC  02/19/21 $30 4 7,676
TLRY  02/19/21 $50 4 6,781
REV  02/19/21 $25 4 6,373
GME  02/19/21 $100 4 5,664
WKHS  02/19/21 $60 4 5,273
PGEN  02/19/21 $13 4 4,758
GOGO  02/19/21 $25 4 4,719
GME  02/19/21 $200 4 4,474
SKT  02/19/21 $25 4 4,348
TLRY  02/19/21 $60 4 4,334
GOGO  02/19/21 $30 4 4,242
GME  02/19/21 $115 4 4,062
LCI  02/19/21 $11 4 3,963
VXRT  02/19/21 $15 4 3,738
MAC  02/19/21 $20 4 3,687
GME  02/19/21 $320 4 3,626
BBBY  02/19/21 $45 4 3,339
GME  02/19/21 $80 4 3,215
BBBY  02/19/21 $60 4 3,050
GME  02/19/21 $300 4 2,975

As you can see, the only two companies which appear on both lists are GameStop Corp. and Gogo Inc.

The Gamestop story has already played out, while Gogo Inc. is still running and could have some more to go if Wallstreetbets really gets behind it.

However, the ideal target would have a low not high 1-month return.

So, on a best 2 out of 3 basis, other potential targets could include Root, Tanger, Triterras, Macerich, Precigen, Revlon or Bed Bath & Beyond.

We will continue to keep a close eye on WSB so check back to our daily live show to see who the next stock squeeze target could be. 

The full Stock List (As of February 16th)

Ticker Name Short Interest % 1 Month Return
GOGO GOGO INC 44% 40%
GME  GAMESTOP CORP-CLASS A 43% 48%
SKT  TANGER FACTORY OUTLET CENTER 41% 13%
DDS DILLARDS INC-CL A 40% 24%
LGND  LIGAND PHARMACEUTICALS 39% 40%
ESPR  ESPERION THERAPEUTICS INC 37% 17%
SUMO  SUMO LOGIC INC 36% 29%
CLVS   CLOVIS ONCOLOGY INC 36% 42%
FIZZ   NATIONAL BEVERAGE CORP 35% 24%
ROOT  ROOT INC/OH -CLASS A 34% 2%
ASO  ACADEMY SPORTS & OUTDOORS IN 34% 15%
AXDX   ACCELERATE DIAGNOSTICS INC 33% 47%
AMCX  AMC NETWORKS INC-A 32% 18%
IEA   INFRASTRUCTURE AND ENERGY AL 32% -12%
SPWR  SUNPOWER CORP 32% 56%
ZYXI   ZYNEX INC 31% 18%
RKT   ROCKET COS INC-CLASS A 31% 6%
TR  TOOTSIE ROLL INDS 31% 3%
GTT  GTT COMMUNICATIONS INC 30% 19%
TRIT  TRITERRAS INC-CLASS A 30% -3%
FLGT  FULGENT GENETICS INC 30% 128%
DISCA  DISCOVERY INC – A 29% 30%
VXRT  VAXART INC 29% 18%
PGEN  PRECIGEN INC 29% 4%
OTRK  ONTRAK INC 29% 26%
SRG  SERITAGE GROWTH PROP- A REIT 29% 22%
IGMS  IGM BIOSCIENCES INC 29% 6%
BBBY  BED BATH & BEYOND INC 28% 10%
REV  REVLON INC-CLASS A 27% 6%
TLRY  TILRAY INC-CLASS 2 COMMON 27% 47%
OPK  OPKO HEALTH INC 27% 23%
PETS  PETMED EXPRESS INC 27% 8%
GDRX  GOODRX HOLDINGS INC-CLASS A 27% 30%
RGS  REGIS CORP 26% 23%
CLR  CONTINENTAL RESOURCES INC/OK 26% 19%
RVP  RETRACTABLE TECHNOLOGIES INC 26% 38%
TRHC  TABULA RASA HEALTHCARE INC 26% 3%
ODT  ODONATE THERAPEUTICS INC 26% 25%
MDGL  MADRIGAL PHARMACEUTICALS INC 26% 12%
BGS  B&G FOODS INC 25% 15%
MCS  MARCUS CORPORATION 25% 13%
ICPT  INTERCEPT PHARMACEUTICALS IN 25% 14%
BLNK  BLINK CHARGING CO 25% 9%
KALA   KALA PHARMACEUTICALS INC 25% 15%
DASH  DOORDASH INC – A 25% 8%
SRNE   SORRENTO THERAPEUTICS INC 25% 51%
MAC US  MACERICH CO/THE 24% -5%
APT US  ALPHA PRO TECH LTD 24% 44%
LCI US  LANNETT CO INC 24% -2%
LESL US  LESLIE’S INC 24% -5%
GEO US  GEO GROUP INC/THE 24% -1%
CVNA US  CARVANA CO 24% 3%
IRBT US  IROBOT CORP 24% 50%
WWR US  WESTWATER RESOURCES INC 24% 78%
WKHS US  WORKHORSE GROUP INC 24% 55%
PLCE US  CHILDREN’S PLACE INC/THE 23% 26%
CONN US  CONN’S INC 23% 7%
KNDI US  KANDI TECHNOLOGIES GROUP INC 23% 14%

Full Options List Filtered by Highest Open Interest (As of February 16th)

Ticker Expiration Strike Price Days to Expiration Open Interest
TRIT  02/19/21 $15 4 15,288
TRIT  02/19/21 $13 4 12,988
GME  02/19/21 $800 4 10,666
TLRY  02/19/21 $65 4 8,967
MAC  02/19/21 $25 4 8,602
MAC  02/19/21 $30 4 7,676
TLRY  02/19/21 $50 4 6,781
REV  02/19/21 $25 4 6,373
GME  02/19/21 $100 4 5,664
WKHS  02/19/21 $60 4 5,273
PGEN  02/19/21 $13 4 4,758
GOGO  02/19/21 $25 4 4,719
GME  02/19/21 $200 4 4,474
SKT  02/19/21 $25 4 4,348
TLRY  02/19/21 $60 4 4,334
GOGO  02/19/21 $30 4 4,242
GME  02/19/21 $115 4 4,062
LCI  02/19/21 $11 4 3,963
VXRT  02/19/21 $15 4 3,738
MAC  02/19/21 $20 4 3,687
GME  02/19/21 $320 4 3,626
BBBY  02/19/21 $45 4 3,339
GME  02/19/21 $80 4 3,215
BBBY  02/19/21 $60 4 3,050
GME  02/19/21 $300 4 2,975
GME  02/19/21 $150 4 2,718
TLRY  02/19/21 $100 4 2,686
TLRY  02/19/21 $45 4 2,479
PGEN  02/19/21 $15 4 2,400
KNDI  02/19/21 $15 4 2,365
KNDI  02/19/21 $16 4 2,311
AMCX  02/19/21 $85 4 2,267
WWR  02/19/21 $15 4 2,266
GME  02/19/21 $500 4 2,222
GME  02/19/21 $250 4 2,166
TR  02/19/21 $50 4 2,161
SRNE  02/19/21 $30 4 2,109
GME  02/19/21 $120 4 2,082
TRIT  02/19/21 $20 4 2,031
WKHS  02/19/21 $56 4 2,006
GME  02/19/21 $400 4 1,929
BBBY  02/19/21 $50 4 1,876
MAC  02/19/21 $21 4 1,821
TRIT  02/19/21 $25 4 1,788
OPK  02/19/21 $9 4 1,767
GME  02/19/21 $110 4 1,740
VXRT  02/19/21 $20 4 1,705
TRIT  02/19/21 $18 4 1,705
GME  02/19/21 $85 4 1,700
TLRY  02/26/21 $65 11 1,689
BBBY  02/26/21 $60 11 1,688
GME  02/26/21 $800 11 1,686
TLRY  02/19/21 $55 4 1,670
BLNK  02/19/21 $85 4 1,613
KNDI  02/19/21 $14 4 1,574
BLNK  02/19/21 $90 4 1,542
REV  02/19/21 $20 4 1,470
RKT  02/19/21 $31 4 1,426
BGS  02/19/21 $50 4 1,318
BBBY  02/19/21 $55 4 1,279
GME  02/19/21 $125 4 1,268
FIZZ  02/19/21 $200 4 1,248
GME  02/19/21 $90 4 1,176
TLRY  03/12/21 $100 25 1,162
GME  03/05/21 $800 18 1,137
AXDX  02/19/21 $35 4 1,120
CLVS  02/19/21 $12 4 1,111
VXRT  02/19/21 $18 4 1,104
GME  03/12/21 $800 25 1,077
KALA  02/19/21 $15 4 1,071
TLRY  02/19/21 $70 4 1,061
BLNK  02/19/21 $80 4 983
IEA  02/19/21 $30 4 976
ROOT  02/19/21 $35 4 972
TLRY  02/26/21 $60 11 962
CLVS  02/19/21 $15 4 943
GME  02/19/21 $140 4 926
GME  02/19/21 $350 4 915
LGND  02/19/21 $260 4 904
CLVS  02/26/21 $12 11 902
WKHS  02/19/21 $55 4 884
GME  02/19/21 $105 4 862
ZYXI  02/19/21 $30 4 844
TLRY  02/26/21 $50 11 835
TLRY  02/19/21 $80 4 826
TLRY  03/12/21 $60 25 803
GME  02/19/21 $700 4 746
GME  02/19/21 $95 4 737
BBBY  02/19/21 $44 4 735
PETS  02/19/21 $60 4 727
LCI  02/19/21 $10 4 725
WKHS  02/26/21 $60 11 719
GME  02/19/21 $420 4 719
RVP  02/19/21 $30 4 715
PGEN  02/19/21 $20 4 708
TLRY  02/19/21 $47 4 707
GME  02/26/21 $200 11 677
TLRY  03/05/21 $65 18 676
AMCX  02/19/21 $80 4 665
SRNE  03/05/21 $23 18 657
TLRY  02/19/21 $56 4 647
TLRY  02/19/21 $46 4 642
GME  02/26/21 $80 11 636
GME  02/19/21 $570 4 625
TLRY  02/26/21 $100 11 617
AXDX  02/19/21 $30 4 615
TLRY  02/19/21 $54 4 612
LCI  02/19/21 $12 4 610
VXRT  03/05/21 $20 18 609
GME  02/19/21 $165 4 606
VXRT  02/26/21 $15 11 584
BBBY  02/19/21 $46 4 576
TLRY  02/19/21 $48 4 574
VXRT  02/19/21 $30 4 574
SPWR  02/19/21 $75 4 573
VXRT  02/19/21 $17 4 571
LCI  02/19/21 $13 4 554
VXRT  02/19/21 $25 4 549
VXRT  03/05/21 $15 18 547
AXDX  02/19/21 $25 4 546
GME  02/19/21 $600 4 544
IEA  02/19/21 $35 4 544
GME  03/05/21 $350 18 534
VXRT  02/19/21 $14 4 523
GME  03/05/21 $95 18 522
SPWR  02/19/21 $80 4 519
WKHS  03/12/21 $60 25 512
BBBY  02/19/21 $43 4 511
SRNE  02/19/21 $25 4 508
BBBY  03/05/21 $60 18 505
GME  02/19/21 $180 4 500

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Grizzle hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.