NVDA and TSLA are the riskiest shorts, followed far behind by Magnificent Seven peers.

The largest stocks also tend to have the highest notional short interest. The table presents these in sorted order.

Multiplying the notional value by the average daily move yields the short notional daily value at risk—an estimate of the dollar amount shorts are exposed to each day, either up or down.

Notably, NVDA and TSLA have the highest daily short risk, both exceeding $1 billion. NVDA leads due to its size, while TSLA ranks high because of its volatility.

The accompanying graph shows that this relationship has remained relatively stable over time, with TSLA and NVDA consistently at the top and other names trailing behind.

Investors can estimate their risk exposure by multiplying their short (or long) positions by the average daily move, calculated by dividing annualized volatility by √252—the approximate number of trading days in a year.

Regarding short interest trends this year: TSLA and META have increased, NVDA remains flat, and MSFT, AMZN, and AVGO have declined.

Stocks with the largest price gains also tend to show the greatest increases in short interest.

Notable extremes:

• META: +23% price, +19% short interest

• AAPL: –20% price, –36% short interest

• TSLA: –19% price, +17% short interest

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The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC (“S3 Partners”) to be reliable and accurate. Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use. Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks, and merits, as well as the legal, tax, accounting, and investment consequences, of such decisions.