This begs the question – what, if anything, materially changed for both companies?Ī classic short squeeze (as many viewed the initial January 2021 squeeze) does not tend to drag on for months after an initial rapid price increase. Conversely, both meme favorites have demonstrated a stubborn resilience, with equity prices for both remaining markedly elevated since the first signs of the squeeze. Many still view the trend (and its major epicenters, Gamestop Corporation and AMC Entertainment Holdings Inc.) as temporary price dislocations in the equity markets, driven partly by dedicated online communities like WallStreetBets and by the hedging of equity options market makers.
However, nowhere can it be felt more strongly than in the new 2021 asset class, “meme stocks”. This influence can be felt market-wide, as potentially one of the drivers of the equity options markets boom post-COVID. While initially the phenomenon was confined to small, highly concentrated niches, it is indisputable that retail traders have become a substantial force. Retail trading is a front-and-center issue in many market participants’ minds, having grown dramatically in recent years due to the emergence of low-or-zero transaction fee retail brokerages like Robinhood. As someone fascinated by the mechanics of the options markets, meme stocks, and stock market bubbles, it seemed fitting to begin this journey there.
AMC SQUEEZE POTENTIAL HOW TO
Having recently joined Moody’s Analytics, this blog will be structured akin to the journey of a learner – along the way, I want to share insights as I discover them, and how to best utilize a world of rich consumer, economic, and corporate credit data to paint a fuller picture of what’s going on. Hello everyone! This will be the first post in a blog series focusing on applications of quantitative credit data to broader market trends.
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