Air France (AF) and Wizz Air (WIZZ) have seen their stock prices drop by roughly 50% this year, with each showing increased short positions. Air France’s short interest is now around 20% of float, while Wizz Air’s squeeze risk indicator has recently climbed to 77.5. Both stocks share a squeeze risk history, though they haven’t always experienced actual squeezes when indicators rise. Despite similar trends in stock price declines and rising short positions, their short interest levels don’t always move together daily.

• Air France has lost almost half its value this year. It was down 10% on earnings. • The short position has grown to around the 20% of float level from around 8%. • Air France’s squeeze risk has spent a lot of time above 70 recently but is currently at 55 and may have some small squeezes. • Despite the increase in the position as the stock going down as a trend, there is no monthly correlation between the returns and short position.

AF Stock Price and Short Position

AF Stock Price and Squeeze Risk

• Despite the short position doubling in shares or % of notional, the short notional is lower as the stock price is much lower. • WIZZ air graph looks like Air France, with the stock losing half of its value and the short position doubling. • The squeeze risk indicator is now at 77.5, where it has been before, but a squeeze did not happen.

WIZZ LN Stock Price and Short Position

WIZZ LN Stock Price and Short Position

• Despite the short position doubling in shares or % of notional, the short notional is lower as the stock price is much lower. • These two stocks are correlated so they could both squeeze together. The short positions follow a similar pattern but are not correlated day to day.

Investors should watch Air France and Wizz Air’s short positions closely for squeeze potential as stock values remain low.

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