Days to cover
MarketsDefinition
Short interest divided by average daily trading volume. Estimates how many trading days it would take for all short positions to be closed if shorts started buying at average volume.
2-3 days = normal. 10+ days = high risk of short squeeze if positive news triggers buying. GameStop pre-squeeze: 30+ days to cover, with 140% short interest — classic squeeze setup.
2-3 days = normal. 10+ days = high risk of short squeeze if positive news triggers buying. GameStop pre-squeeze: 30+ days to cover, with 140% short interest — classic squeeze setup.
Formula
Days to cover = Short interest / Avg daily volume