The WallStreetBets forum on the Reddit Inc. website on a laptop computer and the GameStop logo on a smartphone arranged in Hastings-On-Hudson, New York, USA, Friday, January 29, 2021.
Tiffany Hagler-Geard | Bloomberg | Getty Images
GameStop shares were volatile in pre-market trading on Monday as the frantic Reddit-fueled transaction continues.
The shares of the brick video game retailer rose 18% to $ 384.89 in premarket trading. Shares rose about 2% to $ 333. The stock rose 1.625% in January.
The astronomical rally caused a loss of almost 20 billion dollars on the market to cover funds with short positions compared to shares, according to S3 Partners. However, many sellers soon retain their bear positions.
Robinhood and other trading applications continue to limit the purchase of GameStop stock and option contracts, along with those of other short-circuit names, after a highly volatile trading week due to the Reddit-led retail frenzy of 5 million WallStreetBets forces. “
The limitations also apply to 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, depending on expectations that the market value will fall below that level when it is time to pay for the borrowed shares.
– CNBC’s Yun Li contributed to this report.