My first earnings short-squeeze trade idea is semiconductor player Linear Technology (LLTC), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Linear Technology to report revenue of $334.79 million on earnings of 45 cents per share.
The current short interest as a percentage of the float for Linear Technology is notable at 4.3%. That means that out of the 231.53 million shares in the tradable float, 9.98 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 6.2%, or by about 579,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of LLTC could easily rip sharply higher post-earnings as the bears rush to cover some of their short positions.
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