Today’s trade is in a name that has caught the fancy of aggressive short-sellers. As of the latest update, approximately 25% of the outstanding shares in Chewy Inc $CHWY are held in short positions.
Now, I’m sure the short-sellers have done their homework and have very compelling reasons to be short. I will concede their points to them.
However, short-sellers are human too. And being human means they can also be wrong. And if they are wrong, the only way they can make the losses stop is to buy stock to cover their short positions. If 25% of the float has to cover their shorts, that sets up the possibility of a wildfire to the upside.
We’re here for that possibility.
Check out this chart: