Opendoor Technologies jumped 120% on Monday, extending its gravity-defying rally from final week, as traders continued to pile into the stock that has discovered a sudden fandom amongst retail traders and social-media platforms.
The stock’s triple-digit surge despatched shares of the Tempe, Arizona-based firm hovering to $4.97, well-above the $1 degree it was bouncing round for the previous few months. If the report advance holds via the session, the stock will notch its sixth straight day of features. Shares have since pared their rally to 54% and buying and selling was briefly halted due to volatility. When the market closed, Opendoor was at $3.21, up 96 cents or 42.67% on the day.
Opendoor has been the topic of chatter amongst retail traders on social media in latest days after Eric Jackson, founding father of Toronto-based hedge fund EMJ Capital made as sequence of posts on social media platform X encouraging shopping for. It was listed as the topmost actively traded stock on Stocktwits Monday afternoon, and was being closely cited by posters on Reddit’s WallStreetBets thread.
“Individual traders are partying prefer it’s 1999,” mentioned Matt Maley, chief strategist at Miller Tabak + Co. “The strikes in a few of these new meme names is changing into very harking back to what we noticed in 1999. The transfer in Opendoor is simply essentially the most dramatic.”
Roughly 1.4 billion of Opendoor shares exchanged arms in Monday’s intraday buying and selling, greater than 1,333% of the three-month common. Short curiosity within the stock is roughly 24% of the free float, in accordance to information compiled by S3 Partners.
Options quantity for Opendoor shares greater than doubled from the earlier report Friday to exceed 2.35 million contracts. About half of the amount was in choices expiring this Friday. The common commerce dimension within the most-active $4.50 name was simply 12 heaps, an indication that a lot of the exercise was from retail traders.
The firm made its public market debut in 2020 by merging with a particular function acquisition firm. Its share worth has slumped since a growth in early 2021. The stock was down 51% this yr earlier than its eye-popping six-day surge.
–With help from David Marino
