$Opendoor Technologies Inc(OPEN)$ās rally is no ordinary meme stock move. š
After a two-month surge and three straight days of gains, its YTD performance has already hit +280%. And todayās open? Still climbing!
Why is it still running? Short Squeeze ongoingā¦
With short interest still above 20% and its small-cap profile, a coordinated squeeze by retail or institutions could push the stock higher.
The hype started on Redditās WallStBets, where many are calling it āthe next $Carvana Co.(CVNA)$ .ā Donāt forgetāCarvana rocketed 100x in just 30 months. š®
Some even believe:
āOpendoor is building the way people will trade real estate for the next 10ā50 years.ā
Some sets PT for $8.
Wall Street is betting BIG that $OPEN is going down.
Meanwhile, Wall Street hedge funds are piling on shortsāCitadel, Jane Street, Wolverine and more loading up on puts. But retail enthusiasm and squeeze potential have turned $OPEN into a high-volatility battleground:
Hedge Funds vs. Retail, Fundamentals vs. Momentum.
So whatās next? Another leg higher, or a meme-stock flameout?
Gamble⦠or golden chance? š²
To learn more about $Opendoor Technologies Inc(OPEN)$ās move, welcome to follow @Barcode. She writes insightful technical analysis on these high volatile stocks just like $OPEN.
Discussion:
Do you think Opendoor could really be the next Carvana?
If it keeps running, whatās your price target?
With this kind of volatility, are you chasing the squeeze or staying on the sidelines?
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Comments
Still, Iām cautious. Hedge funds are shorting for a reasonāOPEN faces profitability issues, and housing isnāt strong. Momentum can fuel a squeeze, but fundamentals always return. To me, this looks more like a showdown between retail and institutions than a real growth story.
I wouldnāt chase at these levels, but it stays on my watchlist. If momentum holds, $8 is possible. For me though, itās more of a short-term play than a conviction hold. With volatility this high, risk management decides who wins or loses. š²
@Tiger_SG @TigerStars @Tiger_comments
@linkoog @BillyR
With 24% of the float shorted, this was less of a recovery play and more of a genie escape. Once the squeeze began, it was Open Sesame and poof - the hedge funds vanished in a cloud of margin calls!
Retail investors from Reddit saw the chart, whispered abracadabra, and now Opendoor is trading like it has got Zillow's wand and Carvana's magic cape.
Rate cut hopes sprinkled fairy dust on housing stocks. Lower mortgage rates equals more transactions and Opendoor's flying carpet gets a tailwind.
If you are tactical & love a good squeeze, this is your genie moment. But if you are risk adverse, this might just be a popcorn trade, not a portfolio treasure because sometimes, the best magic trick is knowing when not to say Open Sesame.
@Tiger_SG @Tiger_comments @TigerStars @CaptainTiger @TigerClub