This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Short-Squeeze Plays Set to Pop

Stocks in this article: JCP GRPN OPNT LWAY ACAT

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

OPNET Technologies

One potential earnings short-squeeze play in the software and programming complex is OPNET Technologies (OPNT), which is set to release numbers on Monday after the market close. This company is a provider of application and network performance management solutions. Wall Street analysts, on average, expect OPNET Technologies to report revenue of $44.79 million on earnings of 21 cents per share.

OPNET is another severely beaten-down heavily-shorted stock. So far in 2012, it has been destroyed by the sellers with shares falling over 35%. Traders should now keep an eye on this stock for a potential of short-squeeze and rebound trade off these oversold conditions post-earnings.

The current short interest as a percentage of the float for OPNET Technologies is notable at 8.3%. That means that out of the 14.92 million shares in the tradable float, 1.23 million shares are sold short by the bears.

From a technical perspective, OPNT is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has dropped hard from its February high of $38.47 to a recent low of $22.10 a share.

Since that big-time selloff, OPNT has now started to trend sideways between $24 and $22 a share. A move outside of that sideways trading pattern post-earnings should set this stock up for its next big trend.

If you're a bull on OPNT, then I would wait until after they report and look for long-biased trades if this stock can break out above $24 a share with high-volume. Look for volume on that move that registers close to or above its three-month average action of 238,573 shares. If we get that action, then I would add to any long positions in OPNT if it takes out its 50-day moving average of $26.16 a share with volume.

I would avoid OPNT or look for short-biased trades if the stock fails to trigger that move, and then drops below that major near-term support at $22 a share with high-volume. Target a move toward its next significant support zone at $17.50 a share if the bears gain full control of this stock post-earnings.

4 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs