This Texas Oil Company Just Became The Latest Meme Stock

Mexico’s Push For Government Control Could Lead To Sudden Price Hikes
February 14, 2021
Nigerians Can Now Sue Shell In The UK For Oil Pollution
February 14, 2021
Show all

This Texas Oil Company Just Became The Latest Meme Stock

A small crude oil company based in Texas is seeing a surge in out-of-the-money call options in what could be a sign of another burst of retail trader action, Bloomberg reports, citing Reddit discussion threads mentioning the company.

Ring Energy, which pumped a mere 9,500 barrels of oil daily as of the third quarter of 2020, may become the second oil “meme stock”, after it saw its share price double over the last two weeks.

Last week, media reported the case of New Concept Energy, another Texan company even smaller than Ring Energy, which only produces some 70 barrels of oil equivalent daily, saw its stock price soar by as much as 1,000 percent to $128 apiece. At the time, a Redditor from the WallSteetBets group that caused the now notorious surge in the price of GameStop shares said the group had nothing to do with the price rise of New Concept Energy, blaming it on “market manipulation.”

The so-called meme stocks—the stocks of small and normally insignificant companies—have become the focus of attention for many retail traders recently as a way of sticking it to Wall Street hedge funds that have large short positions on many of these companies, which tend to be having a hard time for one reason or another.

The trading frenzy the market witnessed in the last couple of weeks indeed led to substantial losses for some hedge funds. Still, observers were quick to warn that retail traders stand to lose money too when the artificially pumped up rally of the stocks in question ended.

Based on the latest reports, it seems, however, that losses or not, retail traders have got a taste of moving the market in one direction or another and are not going to completely stop challenging the big players.

Leave a Reply

Your email address will not be published. Required fields are marked *

Select Language »
Rate Our Services
close slider

Rate Our Website and / or Training Services

WeCreativez WhatsApp Support
Our GOOGPro team is here to answer your questions. Ask us anything!
Hi, how can I help?