Shares of Camping World Holdings (CWH -2.87%) are soaring 15% higher in midday trading, though there doesn't seem to be any specific news driving it up.
The recreational vehicle retailer has been on a tear since March, when its stock lost two-thirds of its value. Over the ensuing months, Camping World has been one of the market's top-performing stocks, gaining 777% as investors bet a postpandemic economy would have consumers exploring America's highways in an RV.
Although nothing seemed to spark today's jump, Camping World is a heavily shorted stock with 22% of its float sold short. Its short interest ratio -- the theoretical time it would take for short-sellers to cover their position -- is sitting above 13 days, and anything over seven is considered a lot.
Short-sellers could be getting squeezed and covering their positions, which has the effect of driving up shares even higher and forcing more short-sellers to cover.
They may bet that after such a big run-up, the second wave of COVID-19 cases the country is experiencing will lead to new lockdown orders being put in place and crashing the stock. Indeed some states are clamping down again, while others are delaying fully reopening.
But Camping World bulls may be saying we can't hide indoors until a vaccine is developed, which may never happen, so summertime is the best time to be getting out on the road again.