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By Opalesque Geneva: Retail traders have been buying options on some unexpected stocks, driving up share prices in an apparent return of "meme stock mania."
Some have pointed to a dangerous market condition we haven't seen in a while: full-blown euphoria. For example, the stocks of Opendoor, an estate agent group with weak fundamentals, are seeing massive trading inflows, reports Yahoo. The Barclays Euphoria meter has just hit a yearly high. And Citi's Levkovich Index is also sitting in "euphoria" territory. A meme stock is a stock that gains popularity among retail investors through social media.
According to The Economist, retail investors are currently embracing the DORK stocks, which include bakery chain Krispy Kreme (ticker: DNUT), Opendoor, mortgage provider Rocket Companies, and retailer Kohl's, all with market valuations ranging between $650m and $31bn. These stocks are aggressively shorted by hedge funds, and retail traders are hoping to squeeze the short-sellers and drive up the prices. A new meme-stock frenzy has begun, concludes the paper, mirroring the sagas of video games retailer GameStop and movie t...................... To view our full article Click here
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