The stock of Jack in the Box could soon live up to its name.
Rising short interest in shares of the West Coast-based fast-food chain appears to be setting the stock up for a short squeeze, Danielle Shay, director of options at Simpler Trading, told CNBC’s “Trading Nation” on Friday.
“I like Jack in the Box here, but for a short-term options trade,” Shay said.
Though the stock is not far off its all-time highs, which would usually preclude Shay from buying in, she made an exception on account of the unusual activity. Jack in the Box currently has 9.2% short interest, according to FactSet.
“With something like this that has short interest, it does have the potential for a short squeeze and it…