Short squeeze on silver from Reddit’s “WallStreetBets”

New York (Jan 29)  If you haven’t heard about the short squeeze plays which began on Reddit’s WallStreetBets forum you are probably living under a rock. Over the last few days, posts that came from this forum created an army of independent traders collectively working together. More importantly, this legion of traders has their sites upon large hedge funds and institutional traders who have been shorting certain stocks. In particular, two major stocks have been in the news and they are GameStop, (ticker symbol: GME) and AMC Theaters (ticker symbol: AMC).

GameStop owns and operates brick-and-mortar stores throughout the United States that specialize in the sale of video games and related items. Gains this week before today’s dramatic selloff amounted to 200%. According to CNBC is GameStop stock gained nearly 930% year to date before today’s sharp selloff. The short squeeze resulted in shares in GME trading to a high of approximately $340 yesterday. Today GME shares reached an intraday high above $480 before selling pressure took the price per share down 44.29% or a drop of $153.91, closing at $193.60

This strategy began on Reddit’s WallStreetBets forum after information surfaced that the popular financial service company Robinhood had been monetizing its service which allows traders to buy and sell shares at no cost by selling order information to large institutional players and hedge funds.

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