AlenCiken

Reddit army buying heavily shorted REV stock

NYSE:REV   Revlon, Inc. New
Shares of REV were jumping again as a massive short squeeze on consumer stocks continued into its third day.

The squeeze instigated by a group of traders on Gamestop has now spread to other heavily shorted stocks

There was no news out on any of these three stocks today, and certainly nothing of the kind that would generate this kind of movement for fundamental reasons.

Instead, traders on platforms like Reddit have figured out that they can take advantage of heavily shorted small-cap stocks if enough of them start buying them, and that's what's happened with REV stock.

When a stock is shorted and starts to go up, short-sellers eventually have to buy back the shares or risk further losses, including a margin call forcing the repurchase.

At Revlon , 31% of the stock's float was sold short as of the end of December.

https://www.fool.com/investing/2021/01/2...