The WallStreetBets forum on the Reddit Inc. website on a laptop and the GameStop logo on a smartphone organized in Hastings-On-Hudson, New York, USA, on Friday, January 29, 2021.
Tiffany Hagler-Geard | Bloomberg | Getty Images
GameStop’s shares were volatile in Monday’s pre-market, with the frantic trading fueled by Reddit continuing.
The shares of the traditional video game retailer rose up 18%, to $ 384.89 in the pre-market. The shares were up about 2% to $ 333. The shares were up 1,625% in January.
The astronomical bull has inflicted a mark-to-market loss of nearly $ 20 billion to hedge funds with short positions against the stock, according to data from S3 Partners. However, many short sellers are keeping their positions low.
Robinhood and other trading apps continue to limit the purchase of GameStop stock and option contracts, along with those of other heavily sold names, after a week of extremely volatile trading due to a retail trading frenzy led by 5 million topics Reddit “WallStreetBets”. “
Limitations are also in effect for AMC Entertainment, BlackBerry, Koss, Express, Nokia, Genius Brands International and Naked Brand Group.
Short selling is a strategy in which investors borrow shares of a stock at a certain price in the expectation that the market value will fall below that level when it comes time to pay for the borrowed shares.
– CNBC’s Yun Li contributed to this report.