Best short trades

Screening Filters

1. RSI Category: moderate, overbought

   • Purpose: Find stocks whose recent price momentum is stretched to the upside, but not already breaking down.
   • Rationale: For short trades, you generally want stocks that have run up and may be vulnerable to a pullback.
     • An overbought RSI (typically >70) suggests the stock has risen quickly and may be due for mean reversion.
     • Including moderate avoids names that are already deeply oversold (where shorting becomes more dangerous because a bounce is more likely).
   • Connection to GME: GME often becomes massively overbought after big spikes. This filter looks for that kind of “extended on the upside” condition that can set up a potential short.

2. Moving Average Relationship: PriceAboveMA20

   • Purpose: Identify stocks currently trading above their 20‑day moving average, implying recent strength or overextension.
   • Rationale:
     • When price is above the 20‑day moving average, the stock has had a solid short-term run.
     • For short setups, this is useful because there’s room for a pullback back toward the moving average.
   • Connection to GME: After GME rallies, it typically trades well above short-term averages; that’s often when traders look to fade the move once momentum shows signs of stalling.

3. 1-Week Price Change %: min 3

   • Purpose: Require that the stock has gained at least 3% over the last week.
   • Rationale:
     • A recent positive surge can push prices to unsustainable levels in the short term.
     • For short ideas, you often want names that have just had a pop — the “late” buyers may be at risk if momentum fades.
   • Connection to GME: GME’s short opportunities often appear after sharp, short-term rallies. This filter is trying to surface similarly “just-rallied” names that may now be at risk of short-term reversal.

4. Is Optionable: True

   • Purpose: Limit results to stocks that have listed options.
   • Rationale:
     • Many traders short via options (buying puts, put spreads, or using call credit spreads) rather than shorting shares outright, especially in volatile names like GME where borrowing shares can be expensive or risky.
     • Ensuring the stock is optionable means you can structure short exposure in ways that cap risk, which is crucial in highly volatile or squeeze-prone trades.
   • Connection to GME: GME is heavily traded through options for both long and short views. This filter ensures the candidates resemble GME not just technically, but also in being practical to trade with similar strategies.

Why Results Match the User’s Intent

• You asked for “best short trades” related to GME. Since we can’t know the future, the screener instead looks for conditions that statistically resemble good short setups, especially those that traders might look for in a stock like GME after a spike.
• As a group, these filters target:
  • Stocks that have recently run up (week_price_change_pct ≥ 3%).
  • Are trading above their short-term trend (PriceAboveMA20).
  • Show elevated momentum that may be stretched (RSI moderate/overbought).
  • Are practical to short or hedge with options (is_optionable = True).

Together, this creates a universe of stocks that are technically extended to the upside and potentially vulnerable to a pullback, and that can be traded using strategies similar to what traders might use when shorting or fading a rally in GME.