Opendoor shares surged 20% in premarket trading as extreme call buying created upward pressure. The stock reached $4.88 before experiencing sharp volatility, peaking with a 120% increase before a 40% drop occurred within an hour. This trading behavior has been likened to the Gamestop saga, indicating speculative tendencies among investors. While short-term gains were noted, long-term performance appeared weak as the stock only increases 27% over the past year, revealing potential risks in investing in such volatile stocks.
Opendoor shares are up 20% in premarket trading and reached a peak of $4.88 yesterday before experiencing significant volatility throughout the day.
The surge in Opendoor's share price is attributed to extreme call buying, similar to the Gamestop saga of 2021, reflecting speculative trading behavior.
Although Opendoor experienced a 120% increase, shares plummeted by 40% within an hour, highlighting the swift and severe nature of these stock price fluctuations.
Despite recent volatility, some investors argue that, compared to earlier prices, Opendoor is still only up 27% over the past year, indicating long-term challenges ahead.
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