Replies to post #97248 on Mr Cooper Group Inc (COOP)

[strikehold]

What Does Days To Cover Mean?
A measurement of a company's issued shares that are currently shorted, expressed as the number of days required to close out all of the short positions. For example, if a company has average daily volume of 1 million shares and 2 million shares are currently short sold, the shares have a cover rate of 2 days (2M/1M).





Also referred to as the "short-interest ratio".
Investopedia explains Days To Cover
This ratio is somewhat unique because it measures the future buying pressure on a stock that is virtually certain to happen - short sellers must buy back shares at some point if they are to close out their positions.

If a stock's price begins to rise significantly, investors who have short sold the stock will quickly begin to close out their positions (by purchasing shares off the open market), creating buying pressure for the stock and driving the price up even more. If a previously lagging stock turns very bullish, the buying action of short sellers can result in extra upward momentum and increased losses for short sellers who are slow to close out their positions. The longer the days to cover, the more pronounced this effect can be.

[dragon52]

Based on average daily volume

it would take 3 days of trading for all the shorted shares to be covered.
A lot faster if they all decided to cover on the same day... Just think of how high the pps would go with 52 mil BUYS all coming in at once... Nice

[sidedraft]

I really wish they would leave out the Days to Cover information. If the 50+ million were to be covered in three days that would mean that every transaction would be a buy to cover, that would never happen in normal trading. Just another way to try and make folks think that shorting is no big deal.

If they cover in just 3 days, the PPS would shoot through skies, and go way past the moon.