Orbisa Insights | Take Notes

Part two of our Orbisa Take Notes on GME shows that the rally for meme stocks may have ended just as quickly as it began, with shares of GameStop Corporation (GME) falling roughly 46% in the last week. Orbisa observed a steep decline in its indicative securities lending financing rate, with the measure down 66% week-over-week. The total quantity of shares borrowed and borrow demand percentage also fell by 7% and 11%, respectively. Short investors may have been ready for meme volatility this time around as call volumes for GME at higher strike prices rose considerably last week, an indication that shorts may have hedged aggressively.

Published May 24, 2024.