Why Opendoor Technologies Jumped 245% in July
Shares of Opendoor Technologies (NASDAQ: OPEN) skyrocketed last month as an argument that the stock would be the next Carvana caught fire on social media platforms like Reddit and X (formerly Twitter), driving a meme stock surge.
Trading volume in the stock soared, squeezing shorts, and options purchases also seemed to create a gamma squeeze, which happens when market makers are forced to buy stocks to secure call options that they sell.
The fervor peaked on July 21 when the stock crashed after trading was halted and some investors mistook a company called Open Doors Partners, which filed to sell stock, for Opendoor Technologies. By the end of the month, Opendoor had finished with a gain of 245%, according to S&P Global Market Intelligence.
Source Fool.com
