Riding the Rally: High Short Float Energy Stocks in a Rising Natural Gas Market
- Timothy Beggans
- Sep 18
- 1 min read
Natural gas futures are firming. The prompt contract has rebounded from recent lows, supported by hotter-than-normal forecasts that could lift cooling demand and tighten storage heading into winter. (tradingview.com)
In this setup, high short float energy stocks create powerful opportunities. Rising natural gas prices pressure short sellers to cover, while options provide leveraged upside.
📈 A real-world example
Comstock Resources (CRK) has been heavily shorted. On a recent rally, the September 19, 2025, $17 call options jumped by ~144% in one session. That surge reflects the combined effect of commodity strength, short covering, and option leverage. (CRK overview)
🔍 Why it matters
Short squeeze fuel: High short interest adds buying pressure when the stock rises.
Options leverage: Calls can multiply returns when momentum builds.
Commodity correlation: Gas-focused producers like CRK track futures strength.
⚠️ Risks to watch
High short float = volatility both ways.
Natural gas is weather-sensitive, with storage, LNG demand, and geopolitics as wild cards.
Options may carry high premiums — timing matters.
🚀 Framework for traders
Watch natural gas fundamentals: storage, forecasts, LNG flows.
Overlay stock metrics: short float, liquidity, gas exposure.
Use disciplined risk sizing.
Bottom line: When natural gas futures rise, high short float names like CRK can see explosive moves — and options can magnify them. For traders who manage risk, it’s an opportunity worth watching.
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