NFE has a short interest of approximately 47% of float, with zero shares available to borrow and a borrow fee rate near 94%.
Reddit traders are treating NFE as a high-conviction short-squeeze play, drawing comparisons to the early GME squeeze.
The stock saw a 15% after-hours jump, breaking resistance at $1.60, with call option open interest at $2.50 and $3.00 strikes.
New Fortress Energy Inc. (
The Short-Squeeze Narrative
Price Action and Options Activity
NFE’s price action on November 20 showed significant momentum. The stock broke through $1.60 resistance in after-hours trading, closing at $1.68—a 15% jump from the regular session close. Multiple posts highlighted the importance of hitting the $1.50 strike price to trigger options exercise, which would then push the price further. A post with 44 upvotes noted that if NFE reaches $1.50, options at the $3 strike with open interest of 21,000 contracts would become exercisable, creating a feedback loop that pressures short sellers.
The after-hours move was widely discussed. A post on r/Shortsqueeze with 43 upvotes noted that NFE “maintains a good volume” in after-hours, and that the break of $1.60 resistance “seems to me is set for a good day tomorrow.” Another post on r/10xPennyStocks with 38 upvotes predicted further upside in overnight trading, setting a target of $2.00 to $3.00, where large call option open interest would amplify the squeeze.
Community Sentiment and Volume
The overall sentiment on r/10xPennyStocks was bullish, with an average sentiment score of 0.66 across 101 posts. On r/Shortsqueeze, sentiment was similarly positive at 0.65, with 28 posts generating 1,281 upvotes and 1,140 comments. The volume of discussion was high: NFE saw over 30 million shares traded on the day, according to one post, and the stock’s rank in the ticker ranking data was third, with 94 comments and 165 upvotes.
A recurring theme across posts was the comparison to other short-squeeze plays like SBGX, which some traders said had run its course. Multiple posts urged the community to focus exclusively on NFE, with one user writing, “Let’s just put the blinders on, look at NFE, and go nuts at open.”
Risks and Considerations
While the short-squeeze narrative is compelling, several Reddit posts acknowledged the risks. One author noted that without a fundamental catalyst, the play could be “risky and dilute shares.” Another post pointed out that the official short interest data is updated every two weeks, and the current borrow fee rate of 94% may not fully reflect the latest short interest. The stock’s earnings report was expected later in the evening, which could introduce volatility.
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