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Revenge Of The Meme Stock Mania
Late last week, Goldman noted that retail investor activity was picking back up, with animal spirits stirring anew in some "prototypical meme" names, as David Kostin put it.
A few sessions later, GameStop and AMC had to be halted for volatility just nine minutes into the cash session. Both names subsequently embarked on a wild ride, punctuating a multi-day surge that found a Bloomberg basket of meme stocks rising for five straight sessions on huge volume.
The figure (below) is comical, assumin
It seems that some children didn’t learn from the first time that they got burned. Bring on the shorts.
Citadel et al are alrady laughing their butts off.
Without the volume and direction of cash markets, bid/ask spreads will be 10 times wider over the weekend.
Robinhoods’ orderflow just became even more valuable!
Although I enjoy watching the X Games (extreme sports), I have no desire to try anything so foolish. I do, however, always hope those snowboarders don’t break their necks while attempting to be the next Shaun White.
We now have “X trading”, as in extreme trading.
Whatever.
It has been reported that Joseph Kennedy once said: “If shoeshine boys are giving stock tips, then it’s time to get out of the market.” We may soon see the timeless wisdom of this statement.
A friend of mine was thinking of selling naked puts on both Amazon and Google during the last dip. I’m glad I talked him out of that one! Crazy! However, the same friend is killing it on SPY 440 Sept Calls he bought at around the same time.
Remember this phrase: “basket of 10 popular meme stocks.”
H-Man, this is not going to end well for these people.