A Deeper Dive Into The Whopping Surge Behind Sears’ Stock

The inability for many investors to short the stock has also contributed to the recent rally. Sears is among the most expensive stocks to borrow, according to securities-lending trackers at Data Explorers. In a short sale, traders borrow shares and sell them, hoping they can buy the shares back in the future at a lower price and return them, pocketing the difference as profit.
Demand to borrow shares of Sears has skyrocketed, but there are few shares eligible to be shorted. Mr. Lampert’s buying has probably had something to do with that. Data Explorers estimates only about 11% of Sears’ total shares are out on loan, a level that has stayed consistent for much of the year.
“You physically can’t get your hands on more of the shares to short,” said Alex Brog, an analyst at Data Explorers.