Aside from the dramatic swings observed in their underlying shares of late, meme stocks are in the news because investors and traders will soon be able to access exposure to these companies via single-stock ETFs.
The rally in so-called “meme stocks” reignited in March, with GameStop (GME) spiking over 80% and AMC Entertainment (AMC) climbing nearly 50% during 10 crazy days of trading.
In 2021, a new niche emerged within the stock market, and this group of so-called “meme stocks” tends to be more sensitive to social media mentions, as opposed to traditional, business-related developments.
Digital World Acquisition Corp. (DWAC) took the markets by storm as the collision of Donald Trump, meme stocks and SPACs catalyzed strong interest in the underlying shares.
FOMO (the fear of missing out) has become a popular buzzword during the recent everything rally, but this psychological state of being doesn’t necessarily fit within systematic, disciplined trading/investing approaches.
A short primer on short interest and the short squeeze GameStop (GME) caused quite a commotion in the markets early this year when its historic rally became headline news for nearly every major media outlet. In fact, play-by-play coverage of the electronic game retailer’s seesawing stock prices pushed news of the markets’ substantial volatility off … Continued
Risk increases if a stock is too volatile or makes price moves far outside of what’s expected Options traders often gravitate toward highly volatile stocks. With volatility, they have greater expectations for the stock price and, if played correctly, a greater expectation of profitability. But if a stock is too volatile or makes price moves … Continued
The retail trading frenzy has transformed the risk and reward dynamic on Wall Street, but for how long is anyone’s guess. If the current market environment feels somewhat unique, there’s a reason for that: It is. Since the onset of the coronavirus crisis, risks in the financial markets have grown significantly, as have potential rewards. … Continued
Silver volatility exploded in recent days as a newly emboldened army of retail investors and traders targeted the commodity with their collaborative “momentum” approach. The retail narrative driving GameStop (GME) higher last week was certainly riveting, but the fact is, momentum (aka “momo”) investing and trading has been around for many, many years. To wit, … Continued