Opendoor shares up big again after call volumes set records for three straight sessions
The surge in online real estate company Opendoor Technologies, which has already doubled this week, is a flows story: traders are looking to get in on the ground floor of a potential turnaround.
There is not a fundamental catalyst pushing shares higher. Instead, there is a belief in the potential for a series of fundamental catalysts, a hope that all the negatives had been more than priced in when it traded below $1, and/or just the thought that others will keep piling in that’s inspiring a heck of a lot of retail zest for the stock.
That flows story in the options market has been monumental for the stock relative to its history. The stock has set records for daily call volumes traded in back-to-back-to-back sessions. More call options have traded in the first four days of this week (1.7 million) than the six months before that (1.4 million).
And the enthusiasm for the underlying stock looks to be continuing: it’s up more than 12% in premarket trading, and is in the top 50 for value traded among all US stocks ahead of the open, ahead of much, much larger companies like Exxon Mobil, Oracle, Berkshire Hathaway, Costco, and Pepsi.
Even if the stock goes nowhere on Friday, it would still be far and away its best week ever, and it’s not particularly close.
The stock is still more than 95% off its closing peak. But it’s also clearly in the market — and public — consciousness in a way it’s never been before.
