High short interest stocks: the most shorted stocks this week

The most shorted stocks give us vital insights into not only the sentiment toward individual companies but the broader market too. Track the top 10 most shorted stocks this week and find your opportunity.

Downtrend 2

Shorted stocks list: this week’s most shorted stocks

Here's a list of the most shorted stocks this week to December 31 2021, by average sell volume from our UK client accounts.

  1. Tesla
  2. BHP Group
  3. Anglo American
  4. EasyJet
  5. Apple
  6. Nvidia
  7. BMW
  8. Softcat
  9. Lloyds Banking Group
  10. Uniper

Yesterday, Tesla recalled 475,000 Model 3 and Model S cars to fix issues the cars had with their rear-view cameras and trunk latches. The problems are thought to increase crash risk, according to a US auto safety regulator, although no crashes or injuries have been reported. Shares were down by 1.46% in trading. However, TSLA stock was up 6.22% for the week as investors rejoiced that Elon Musk had finished selling his 10% stake.

BHP Group’s share price is having a jolly end to the year, having risen 7.24% for December – 1.09% of that this week. This is likely still driven by the company’s unification plan of its two businesses, resulting in a single listing on the ASX and withdrawal from the LSE.

Shares of mining company Anglo American are also up this week by 1.20% as the FTSE 100 reached a 22-month high in the post-Christmas period. This followed fears of the Omicron strain easing. However, Anglo shares did move lower after it and Brazil’s Vale announced preliminary talks on the potential to jointly develop Vale's Serpentina iron ore resource.

Airline easyJet has also been bolstered by optimism around recovery from the Omicron variant. It’s up 12% this month and 1.6% this week.

Apple stock is still wavering around the $3 trillion mark, should it cross the market cap threshold it would be the first company to do so. This comes after workers organised a walk out – although the reasons weren’t necessarily clear, it was announced that Apple was intending to give big end of year bonuses to prevent any staff defecting to Meta.  

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Most short-sold stocks explained

The most shorted stocks are those that have been sold the most over a period of time, in this case a week.

Traditionally, in order to short a stock, you’d have to borrow the asset from a third party before you could sell it on the market. You’d do so in the belief that the market price would fall, and you could buy it back at a lower price, pocketing the difference before you return the shares to your lender.  Traditionally, in order to short a stock, you’d have to borrow the asset from a third party before you could sell it on the market. You’d do so in the belief that the market price would fall, and you could buy it back at a lower price, pocketing the difference before you return the shares to your lender.

Now, thanks to electronic trading and derivatives, shorting a stock is just as straightforward as buying it. You just click ‘sell’ in your platform rather than ‘buy’. This is because you’ll never take ownership of the shares, you’re just speculating that it will fall in price.

Heavily shorted stocks create a bear market, where sellers enter and put downward pressure on the asset’s price. Buyers are forced to close their positions before they lose too much money, causing the market price to just fall lower and lower.

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