Days to Cover: Why the Ratio Can Fall Without Short Covering
Summary
Hollow Point Trading shares a video explaining why days to cover is a ratio, not a countdown. It shows how the figure can fall while a short position remains unchanged if the average daily volume rises, helping traders interpret short-interest data more accurately.
https://youtu.be/Qp1FaubPs8w
Days to cover can fall without a short position closing #DaysToCove...
Days to cover is a ratio, not a countdown. Imagine a hypothetical reported short interest of one million shares and average daily volume of two hundred thousand shares. Dividing the position snapshot by that volume gives five days of average volume. Keep the short position unchanged, but use a later declared averaging window with five hundred th...
