• 3 days Big Business’ New COVID Initiative: No Jab, No Job
  • 5 days The Most Interesting Stocks Of Earnings Season, For Better or Worse
  • 7 days Chinese Stocks Rebound After Regulatory Scare
  • 9 days Apple Stocks Falls After Blowout Earnings Report
  • 9 days The 5 Biggest IPO Disasters Of 2021
  • 10 days Crypto-Based ‘Shadow Financial Market’ Spooks Regulators
  • 13 days Ireland Balks At Biden’s Global Tax Plan
  • 16 days Robinhood To Trade On Nasdaq Targeting $32B Valuation
  • 19 days Facial Recognition Is Watching You
  • 21 days Biden’s $3.5T ‘Human Infrastructure’ Workaround
  • 21 days The Fed’s $3 Trillion Headache
  • 24 days Why Bitcoin Could Struggle To Recover After Epic Crash
  • 24 days Wells Fargo Back In The Spotlight Over Personal Loan Cancellations
  • 25 days Delta Variant Real Threat To Economic Recovery
  • 28 days JEDI Drama Continues With Microsoft Contract Cut
  • 30 days DiDi Shares Take a Beating From Chinese Regulators
  • 31 days Thousands Of Companies Hit In Latest Ransomware Attack
  • 31 days Jobs Report Has Big Numbers, But Still Big Problems
  • 32 days Robinhood’s ‘Mission’ Questioned in $70M Fine
  • 35 days Didi Just Went Public, And Uber Is Loving It
Ohio Residents Brave Vaccine for Chance To Win $1M

Ohio Residents Brave Vaccine for Chance To Win $1M

Countries worldwide are in different…

Military Coups Are Big Business

Military Coups Are Big Business

Military coups are rarely altruistic…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. News
  3. Breaking News

Small Oil Firm Gets Massive Wall Street Bets Bump

WSB

An oil company producing the equivalent of 70 barrels of oil daily surged in value almost 1,000 percent to $128 million thanks to a surge in trading activity coming from retail traders.

The traders, organized in the WallStreetBets forum on Reddit, took on hedge funds earlier this month and won by, as some of the group say, beating them at their own game of shorting.

What will probably remain in history as the GameStop squeeze happened earlier this week when the WallStreetBets Redditors started buying as much of the company’s stock as they could. Why? To hit back at hedge funds that had opened huge short positions on the company. As a result of the massive retail buying, GameStop’s stock surged from less than $150 per share on January 26 to almost $350 the next day. Hedge funds blinked, as the AP put it, and started closing their positions, incurring heavy losses.

Now it seems the WallStreetBets traders are going other places, too, and they are not even places with huge short positions: Bloomberg reports that short interest in New Concept Energy, a Texas-based driller, whose operations are concentrated in the Appalachian Basin and Utica, stood at 13 percent of its float earlier this month. Yet short positions have fallen even further after the intervention of the traders: short interest in the company now stands at just 0.3 percent.

Meanwhile, trading platforms have restricted trade in response to the wild stock swings the Reddit group also caused in AMC’s stock and Bed, Baths & Beyond. This naturally led to a backlash: Robinhood users have filed a class-action suit against the trading platform for restricting their trade in GameStop and other shares.

Other trading platforms are also restricting trading activity due to the excessive volatility caused by the deliberate stock-buying in the last couple of days.

By Irina Slav for Oilprice.com

Back to homepage

Leave a comment

Leave a comment