There are no real retail shorts in penny stocks. There are naked short MM's but they must cover within 3 trading days according to SEC REG SHO rules. Some will claim to short as scare tactics or blame others for shorting when some penny stocks go down or blame a chart. If you have a good stock that drops it can be profit taking, some dilution etc. and many other things but there are almost nil short in any penny stocks. MM's can borrow shares during the day for trading between clients but they must cover in 3 trading days according to the SEC rules. Shorting penny, and especially sub penny, stocks is a complete myth that most do not understand. It is a shame you read about shorts and there really are none as far as penny stocks go! ABSOLUTELY ALMOST NONE, NIL IN ANY PENNY STOCKS. It would also cost $2.50 to short a single share of any penny stock and most will not spend a quarter million dollars to short 1 million shares of a penny stock. Here is the correct link to Finra. These are the real short numbers and they do them every 2 weeks. The OTC daily site is scam numbers based on buys and sells. Most stocks are manipulated by flip traders or those who missed the boat. Most of those daily numbers are dilution if the stocks are being diluted or profit takers along with panic selling on red. You will also see that if you go to any penny stocks board over time you will see the same. No real short positions. Type in any penny stock symbol when you get to the front page.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.