ABF moved sideways for a year as short interest climbed to 10%, eventually plunging 13% on a Jan 8th profit warning triggered by weakness in food sector.

Following the sell-off, short interest surged to 14%, driving the crowded and squeeze score to 70 and creating high potential for squeezes during rallies.

Short sellers have finally reached a positive return on their positions, while the options market is treating the recent downturn as a one-time event.

Rising Short Interest Meets Falling Profits, Pressure Builds in Associated British Foods.

The stock moved sideways for a year, with the short interest % of float reaching 10%.

Short selling sentiment data is deepening as the company's defensive food and sugar divisions struggle, leading to a downgrade in full-year profit expectations.

Associated British Foods (ABF) was down 13% on a profit warning on January 8th.

After the sell-off, S3 real-time short interest rose to 14% of float, causing the short squeeze score to reach 70.

With the S3 crowded score at 70, when the stock rallies, the short squeeze score rises further—a scenario that happened recently as the stock has rallied.

The short position mark-to-market PNL has gone positive with the recent move; the buildup of the shorts position finally resulted in a positive return.

The options market saw it as a one-time event and did not increase implied volatility afterwards.

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