First Trust Municipal High Income ETF Short Interest Ratio and Short Volume

Short interest is the volume of First Trust Municipal High Income ETF shares that have been sold short but have not yet been covered or closed out. As of February 12th, traders have sold 34,800 shares of FMHI short.

The short interest ratio, also known as the "days to cover ratio", is calculated by dividing the number of shares of a stock sold short divided by its average trading volume. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. A short interest ratio of 10 or greater indicates strong pessimism about a stock. First Trust Municipal High Income ETF currently has a short interest ratio of 1.0.

First Trust Municipal High Income ETF saw a increase in short interest in February. As of February 12th, there was short interest totaling 34,800 shares, an increase of 610.2% from the previous total of 4,900 shares. Changes in short volume can be used to identify positive and negative investor sentiment. Investors that short sell a stock are betting that its price will decline in the future. An increase in short sale volume suggests bearish (negative) sentiment among investors. A decrease on short sale volume suggests bullish (positive) sentiment.

As of the most recent reporting period, the following stocks had the largest short interest positions: ViacomCBS Inc. ($6.50 billion), Aon Plc ($5.58 billion), Charter Communications, Inc. ($5.30 billion), Analog Devices, Inc. ($4.97 billion), Snap Inc. ($3.80 billion), Futu Holdings Limited ($2.84 billion), Airbnb, Inc. ($2.40 billion), Discovery, Inc. ($2.35 billion), Snowflake Inc. ($2.07 billion), and The Kroger Co. ($2.00 billion). View all of the most shorted stocks.

Short selling FMHI is an investing strategy that aims to generate trading profit from First Trust Municipal High Income ETF as its price is falling. First Trust Municipal High Income ETF's stock is trading up $0.04 today. To short First Trust Municipal High Income ETF stock, an investor borrows shares, sells them and buys the shares back on the public market later to return it to the lender. Short sellers are betting that First Trust Municipal High Income ETF will decline in price. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender. The difference between the sell price and the buy price is the trader's profit.

A short squeeze for First Trust Municipal High Income ETF occurs when it has a large amount of short interest and its stock increases in price. This forces short sellers to cover their short interest positions by buying actual shares of FMHI, which in turn drives the price of the stock up even further.

Short interest is typically published by a stock exchange once per month. However, NASDAQ publishes a report for U.S. stocks, including FMHI, twice per month. The most recent reporting period available is February, 12 2021.