While volatility has roared back into the markets in February, bringing with the first 10% correction in ages, everything looked sunny and bright back in January.  Sell-offs can be good for short sellers, depending on how they are positioned.  Judging by the most shorted stocks traded on the New York Stock Exchange between the January 12 to January 31 settlement dates, those sellers may have been surprised by the big sell-off, as overall their moves were mixed and modest in the period.

Short sellers of Ford may have turned out lucky, as the carmaker saw a double-digit percentage gain into the end of the month. However, the number of shares short in Rite Aid and Bank of America shrank handily during those two weeks.

Note that the six most shorted NYSE stocks all had more than 130 million shares short at the end of the most recent settlement period. In fact, all the top 10 had short interest of more than 110 million shares.

AT&T

AT&T Inc. (NYSE: T) once again tops the list, despite a more than a 5% decline to more than 183.05 million shares short by the most recent settlement date. That resumed a run of declines in the four periods to the end of last year, but it was still down from a 52-week high of over 230 million. The latest reading represented 3.0% of the company’s float. As of the end of last month, it still would take around six days to cover all short positions, even though the average daily trading volume shrank somewhat.

AT&T announced recently that it is preparing to roll out super-fast 5G. Yet, in the first two weeks of January, investors watched the share price fall more than 5%, though it was down more than 6% at one point. The stock has continued to recover since then and ended Friday’s trading at $36.05 a share, which is down about 6% from six months ago. AT&T shares have traded hands between $32.55 and $42.70 in the past 52 weeks.

Weatherford

Weatherford International PLC (NYSE: WFT) leaped up to the second spot on the list with about a 7% gain in the number of its shares sold short in the latter weeks of January. That more than reclaimed the modest shrinkage in the number of its shares short in the previous period. The more than 155.92 million shares reported most recently represented 16.0% of the total float. The days to cover reading ended the period at around nine as the average daily volume dropped sharply.

Weatherford has been a regular member of the 52-week low club since its disappointing earnings. Short sellers watched the share price climb about 3% but end the two-week period down more than 8%. The stock closed most recently at $2.89 a share, up from last week’s 52-week low of $2.64. The 52-week high, reached last March, was $7.09. The stock is down more than 16% year to date.

Chesapeake Energy

The number of Chesapeake Energy Corp.’s (NYSE: CHK) shares short has risen in many periods in the past year, but in the latest period it saw a rise of less than 1% to more than 151.62 million. That represented 16.9% of this oil and gas company’s float. At the posted daily average trading volume on the settlement date, it would take about five days to cover all the short positions.

Chesapeake announced some layoffs during the short interest period. While its share price ended the two weeks almost 17% lower, the stock has retreated more than that since that time. The S&P 500 saw just a fractional increase between the settlement dates. The stock was last seen trading at $2.85 a share, which is more than 30% lower year to date. The 52-week low of $2.53 was seen on Friday. Shares have changed hands as high as $6.59 in the past year.

Rite Aid

The reported number of Rite Aid Corp. (NYSE: RAD) shares sold short retreated from more than 157.37 million to almost 143.46 million as of the most recent settlement date, allowing the specialty retailer to slip a couple of spots down the list. That was the fifth straight period of declines. The latest figure still was 13.6% of the company’s total float. The average daily trading volume was cut in half in the most recent period, and the days to cover rose from about four to seven.

Analysts have not seemed too keen on Rite Aid’s turnaround prospects. And its share price ended the latter two weeks of last month more about 9% lower, though it was down more than 14% at one point. The stock closed most recently at $2.01 a share, which was more than 5% lower since the beginning of the year. Rite Aid shares have traded between $1.38 and $6.15 apiece in the past year.

General Electric

General Electric Co. (NYSE: GE) saw the number of its shares short barely grow in the final two weeks of last month, taking a breather after the 25% surge in its short interest that started the new year. The more than 142.35 million shares reported most recently represented 1.7% of the conglomerate’s total float. The daily average volume surged, however, and the days to cover reading ended the period at about one.

Rumors in the period suggested that GE might be ousted from the Dow Jones industrials index. Its shares pulled back more than 11% between the settlement dates, most of that retreat early in the period. In that time, the Dow was essentially flat. GE’s share price was last seen at $14.94, after sinking to a 52-week low of $14.23 earlier in the day. The 52-week high, which was seen last February, was $30.59 a share. The stock now is about 17% lower year to date.

Ford

After a rise of less than 3% in Ford Motor Co. (NYSE: F) shares short in the prior period, the latest period saw a surge of almost 22%. That brought the reported number of shares short to nearly 139.26 million. It also represents 3.6% of the total float, and it lifted Ford into the top six most shorted NYSE stocks. As of the latest settlement date, it would take two days to cover all short positions.

Moody’s recently downgraded Ford’s credit rating, due to softening North American demand and other issues. Its share price ended the latest settlement period about 18% lower. The stock has more than retreated 3% more since then, and shares closed most recently at $10.53. That is almost 17% lower since the beginning of the year. The shares have changed hands between $10.19 and $13.48 apiece in the past 52 weeks.

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And the Rest

Rounding out the top 10 were Bank of America Corp. (NYSE: BAC), Alibaba Group Holding Ltd. (NYSE: BABA), Snap Inc. (NYSE: SNAP) and J.C. Penney Co. Inc. (NYSE: JCP). Snap was the only one among these with rising short interest in the two weeks — a more than 25% gain. J.C. Penney led the decliners with a double-digit percentage retreat in the number of its shares short.

Just outside the spotlight of the top 10 most shorted NYSE stocks was Sprint Corp. (NYSE: S). Not too far away sit Infosys Ltd. (NYSE: INFY), Transocean Ltd. (NYSE: RIG) and Vale S.A. (NYSE: VALE).

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