The NYSE, Nasdaq and SP500 indexes have bounced back from their large sell-offs that started on February 20. The rebound of the Magnificent Seven tech stocks influenced the majority of the bounce back in the indexes while the rest of the broad market lagged. This was the same thing that led the indexes to new all time highs in February and it’s again a sign of an unhealthy market overall.
Reviewing the major indexes now shows many low-risk high-reward sell-short trade setups in the indexes and on a number of once high flying stocks. From large caps to mid caps and small caps, the market is now extremely vulnerable to another big downtrend potentially taking the SP500 to 3800. Below is a list in no particular order of the best stocks to sell-short right now and or simply sell-short the SP500 index.
Atlas Energy Solutions (AESI)
Short Interest: Approximately 23% of shares
Recent Performance: Shares have declined 44% in 2025
Context: The company faced disappointing earnings and cost overruns from its new Dune Express conveyor belt project. Despite current setbacks, some analysts see potential for recovery due to the project’s long-term cost efficiencies .
SharpLink Gaming (SBET)
Recent Surge: Stock surged over 1,000% amid news of a $425 million investment plan to build an Ethereum treasury
Short Squeeze Potential: The stock’s small float and limited tradability of newly issued shares have attracted attention, raising the possibility of a short squeeze .
Super Micro Computer (SMCI)
Short Interest: Short positions exceed long positions by over $500 million
Sector: AI and quantum computing
Context: Despite gains in the AI sector, SMCI has become one of the most heavily shorted stocks on Wall Street .
SoundHound AI (SOUN)
Short Interest: Short positions totaling $1.2 billion against only $340 million in longs
Context: Backed by Nvidia, SoundHound AI is among the AI and quantum computing stocks that have recently become heavily shorted .
Plug Power (PLUG)
Short Interest: Significant short positions relative to long holdings
Context: Plug Power is among the companies with notable short interest, reflecting bearish investor sentiment .
GameStop (GME)
Current Price: $29.95
Recent Performance: May 27 High of 35.74
Context: GameStop continues to be a focal point for short sellers, maintaining significant short interest.
AMC Entertainment (AMC)
Current Price: $3.40
Recent Performance: May 27 High of 4.08
Context: AMC remains a popular target for short sellers, with ongoing volatility in its stock price.
Tesla (TSLA)
Current Price: $332.05
Recent Performance: May 27 High of 363.79
Context: Despite once being a major player in the EV market with increasing competition now, and Hybrid EV of electric and gasoline being the trend now, Tesla has substantial short interest, reflecting mixed investor sentiment.
Beyond Meat (BYND)
Current Price: $3.25
Recent Performance: March 21 High of 3.65
Context: Beyond Meat faces challenges in the plant-based meat sector, contributing to its high short interest.
T2 Biosystems (TTOO)
Short Volume: Approximately 65% of volume shorted on NASDAQ
Context: T2 Biosystems is among the most shorted stocks, indicating strong bearish sentiment .
Caution: While high short interest can signal potential opportunities for short selling, it also increases the risk of short squeezes, where rapid price increases force short sellers to cover their positions at a loss. It’s essential to conduct thorough research and consider market dynamics before engaging in short selling.
If you need more detailed information on any of these stocks or assistance with risk assessment contact us.
Low-Risk High-Reward Trade Setups on Leading Stocks
