What is Days to Cover?
The number of days it would take short sellers to cover their positions based on average daily volume.
Think of it like this
Like measuring how many days it would take to empty a pool using a garden hose - more days means more shorts stuck.
Formula
Short Ratio = Shares Short รท Average Daily Volume- Shares Short: Total shares currently sold short
- Average Daily Volume: Typical daily trading volume
Why it matters
- Shows potential for short squeeze
- Higher ratio = more squeeze potential
- Indicates strength of bearish bets
- Affects stock volatility
What's a good value?
< 2 days
Low
Easy for shorts to cover
2-5 days
Moderate
Normal short interest
5-10 days
High
Significant covering time needed
> 10 days
Very High
Strong squeeze potential
Real-world example
GameStop had a short ratio over 10 days before the famous 2021 short squeeze.
Evaluate this indicator on 8,000+ US stocks
Download Signal Screener