Why Naked Short Selling Is Not As Prevalent As You Think
Wayne Duggan , 07 June 2021
AMC Entertainment Holdings Inc AMC 0.16% jumped another 10% on Monday, and the hashtag #NakedShorting was trended on Twitter in the process.
On Monday’s Benzinga PreMarket Prep, co-host Dennis Dick discussed why the idea that naked short sellers are behind the high short interest in stocks like AMC and GameStop Corp. GME 0.03% is a completely false social media narrative.
“The shorts might get squeezed, but there really isn’t a lot of naked short selling in practice,” Dick said.
He said many AMC and GameStop traders are misinformed about what GameStop’s peak 2021 short interest of around 130% actually means.
