Traders typically look for heavily shorted stocks for two main reasons: either to bet on a decline in the company’s value or to profit from a short squeeze.

Here's a look at the top 10 most shorted stocks in the market right now. 

LCID stock is heavily shorted. See the details here.

What Makes A Stock Heavily Shorted?

The primary reason a stock becomes heavily shorted is that a large number of experienced traders and institutional investors, known as short sellers, believe the company is fundamentally overvalued and that its price will fall.

Heavily shorted stocks often reflect a strong, well-researched conviction among professional traders or institutions that the company faces serious risks. 

However, traders on the bullish side, often retail traders, view high short interest as a setup for potentially massive, fast gains through a short squeeze.

A short squeeze occurs when a ...