On Tuesday (8th), a new wave of Reddit retail stock speculation hits. The new favorite of US stocks is Clover Health, and its stock price soared by more than 106% at the opening.
In the past week, the global theater leader AMC Entertainment surpassed GameStop to become the favorite stock of Reddit retail investors, prompting its share price to surge by more than 110% in June. Now the Reddit retail army is turning to Clover Health in an attempt to squeeze short positions such as hedge funds.
There are more and more discussions about Clover Health on Reddit’s WallStreetBets forum. There are now more than 10 million villagers participating in the discussion. At the same time, retail discussions on Wendy Burger are also increasing.
According to data from S3 Partners, Clover Health may be short-selling, with 32.7% of the company’s outstanding shares being short-selling. Compared with AMC, the short position is about 18%.
Retail investors are advancing into the action of buying and reluctantly selling, resulting in the short side being unable to obtain enough shares to fulfill the option contract, and having to rush to make up for the position, forcing short sellers to make up for short positions with huge losses, driving the stock price to continue to rise, resulting in a short squeeze phenomenon.
Clover Health (CLOV-US) It jumped by more than 106% at the opening on Tuesday and then fell back. Before the deadline, at 11 o’clock in the evening Taipei time on Tuesday, Clover Health soared by 68.25% to a provisional report of 20.20 per share. U.S. dollar. Wendy Burger (WEN-US) Rose by about 17%.
FactSet data shows that in early trading, Clover’s trading volume has exceeded 157 million shares, which is 7 times its 30-day average trading volume of 22 million shares.
Clover Health (Clover Health Medical Company) was established in 2014. It is a San Francisco-based health insurance start-up company. Its main business is to provide health insurance for the elderly over 65. The company hopes to collect and analyze health and behavior data. Maximize medical cost-effectiveness and improve users’ medical conditions.
The U.S. Securities and Exchange Commission (SEC) said on Monday that it is closely monitoring the recent frantic rise in meme stocks to confirm whether there are any signs of misconduct and manipulation.