The drop in Bank of America short interest coincides with recent strength in the stock. Since hitting a 52-week low of $4.92 on Dec. 19, its shares are up nearly 50 percent. They closed at $7.35 on Thursday.
Bank of America's rally was well underway ahead of its fourth-quarter earnings report on Jan. 19, but the shares have continued to rise since that date as investors appear encouraged by the bank's efforts to strengthen its balance sheet by shrinking even if it comes at the price of reduced earnings power.
Bank of America's short interest ratio hit a high of 0.94 percent on Nov. 15. The ratio on Aug. 31 was 0.52 percent.
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