Top Investment Broker Short-Squeeze Plays

Updated from 7:59 a.m. EDT

The recent SEC emergency order against naked short-selling in the stocks of investment brokers and commercial banks may create some attractive short-squeeze opportunities.

A short squeeze takes place when a stock's short-sellers cover their positions quickly when good news boosts the price of the stock. This short-covering often drives the stock price even higher. The metric for measuring short-squeeze plays is the short ratio, which represents the number of days it would take a stock's short-sellers to cover their positions based on the stock's recent average daily volume.

With this in mind, here at Stockpickr, we've come up with a list of the top investment broker short-squeeze plays. The portfolio includes KBW(KBW Quote) and optionsXpress Holdings(OXPS Quote). ...