another meme stock that has surged over 1900% this year, the picture is more cloudy. The number of shares being shorted has risen, but the ratio relative to its shares outstanding has fallen to about 20%, from a peak of over 24% in early January. The movie-theater chain has sold over 100 million shares since January andStill, the data suggests that investors like hedge funds aren’t crowding into trades betting on the prices of meme stocks falling..
Investors like hedge funds could be buying certain stocks to try to trigger this phenomenon, which is known as a gamma squeeze, said Helen Thomas, founder of Blonde Money, a U.K.-based financial research firm. Some individual investors are also trading options and posting screenshots of their positions on Reddit forums.Wall Street is in an uproar over GameStop shares, after members of Reddit’s popular WallStreetBets forum encouraged bets on the video game retailer.
“It cuts two ways: It creates crash ups, but if those stocks begin to trade lower, the dealers then sell,” said Charlie McElligott, a cross-asset strategist atMany Reddit users show no signs of worrying that the upward trajectory of meme stocks may abruptly reverse. Clover Health has become a favorite in recent days for people determined to engineer another battle against hedge funds, sending its stock up roughly 59% this week.
This time around, short sellers may be more cautious about going up against retail traders, whose wagers generally ignore metrics like the profit and sales outlook.
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Forbes - 🏆 394. / 53 Read more »
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: NBCNews - 🏆 10. / 86 Read more »