The WallStreetBets product forum on the Reddit Inc. website on a laptop and the GameStop logo on a smartphone arranged in Hastings-On-Hudson, New York, USA, on Friday, January 29, 2021.
Tiffany Hagler-Geard | Bloomberg | Getty Images
On Monday, GameStop shares were volatile during pre-market trading as frantic trading fueled by Reddit continues.
Shares of the brick and mortar video game retailer jumped up 18% to $ 384.89 in pre-market trading. Shares rose about 2% to $ 333. Shares rose 1.625% in January.
According to data from S3 Partners, the astronomical rally has caused a market loss of almost $ 20 billion to cover funds with short positions in front of the shares. However, many short sellers maintain their bearish positions.
Robinhood and other trading apps continue to limit GameStop stock buying and option contracts, along with those of other very short names, after a hugely volatile trading week due to a leading retail frenzy for a 5 million Reddit thread “WallStreetBets”. “
There are also limitations for AMC Entertainment, BlackBerry, Koss, Express, Nokia, Genius Brands International and Naked Brand Group.
Short-term selling is a strategy in which investors borrow shares of a stock at a certain price, according to the expectations that the market value will fall from this level when it is time to repay the borrowed shares.
– CNBC’s Yun Li contributed to this report.