Rather than buying Hertz shares directly, you could buy call options – a deal that lets you buy shares in the future, for a price you pick today.
#Open a reddit video free#
Then came those who just thought it would be fun to join in, and finally those who were attracted by Hertz’s name showing up on the “most traded” list on Robinhood, the free stock trading app that lies at the heart of much of WallStreetBet’s activity.Īll of that interest was compounded by the hive mind of the community discovering an investing technique labelled “gamma squeeze”. Then came those who were convinced that enough other people would be convinced, and then Hertz really would have value. First came those who were convinced that Hertz had value. Wasn’t that surprisingly low? Could something not happen to rescue the company, particularly if a million retail investors piled in?Īnd so they did. Here, after all, was a household name, trading at just 59 cents a stock. But over the course of June, users on the subreddit began discussing the company. The car rental company filed for bankruptcy protection in May 2020 as a result of the Covid pandemic, and its stock price duly plummeted to record lows. The group, made up of more than 4.5 million members of the social media site Reddit, has been well known in certain corners of the financial community for years thanks to its unique approach to equity markets.Ī classic WallStreetBets trade tends to include a strong narrative at the root, an almost alarming insight into the deep workings of financial markets as the hook, and then, the essential element, enough self-awareness that the whole thing can be adopted as a sort of quantum joke: it’s either all for a laugh or an entirely reasonable investment proposition, and it is impossible to know which until the dust has settled and the winners and losers have emerged. In normal times, everything on WallStreetBets, the anarchic community of online day traders that has propelled shares of the US video game retailer GameStop up 2,200% this year, is simultaneously a joke and wholly serious.
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