Hims & Hers $HIMS ( ▲ 3.17% ) has been hammered over the past month. Shares are down nearly 50% after the telehealth company pulled back from selling a copycat version of Novo Nordisk’s $NVO ( ▲ 1.31% ) weight loss pill and then faced a lawsuit from the pharma giant.
As the stock approaches two year lows, short sellers are pressing their bets.
Shorts Double Down Near Lows
According to Macro Risk Advisors CEO Dean Curnutt, short interest in $HIMS continues to rise and even accelerate despite the steep decline. The stock’s RSI has dropped to around 15, signaling extremely oversold conditions.
With earnings set for February 23, the setup could become combustible. Curnutt noted that $HIMS has historically seen strong post earnings follow through, raising the odds of a sharp short covering rally if results surprise to the upside.
Two Call Spread Plays
For traders looking to position for a potential squeeze without taking unlimited risk, Curnutt outlined two call spread strategies expiring March 20:
Buy the $20 calls and sell the $30 calls.
Buy the $22 calls and sell the $28 calls.
Both structures cap upside but lower the cost of entry compared to outright calls, creating defined risk setups with attractive breakevens.
High Risk, High Reward
There is also notable upside call skew in March expirations, which helps improve payout profiles on bullish spreads.
That said, this is a high volatility situation. $HIMS is under legal pressure, sentiment is weak, and earnings could amplify moves in either direction.
If the company delivers even a modestly positive surprise, however, a crowded short trade combined with oversold technicals could spark a powerful squeeze.