Retail investing subreddit r/WallStreetBets has spun the short-squeeze-stock wheel this morning and it appears the arrow is landing on ROOT.
The company is exploding on the subreddit in terms of comments, and the stock is moving in massive quantities. Some are making their exit as ROOT stock sees a boom and bust this morning, whereas others are buying in and predicting a squeeze that will boost their long positions.
If you don’t know already ROOT is a car insurance company with an innovative model. It insures only good drivers.
Users must download a location-tracking app to leave on when they drive during a test period.
Users deemed by the app to be a good driver are offered a competitive insurance premium through the company.
The result is that the company only insures drivers who are typically much safer. This allows ROOT to offer lower premiums than other insurers who must account for more dangerous clients.
ROOT stock is one of the more heavily shorted by Wall Street institutions; about 19.5% of ROOT’s float is being sold short. The r/WallStreetBets crowd has been recently pouring into the stock as a result.
When we look at the technical side of things ROOT seems to be sitting in a huge falling wedge on the daily chart since going public.
This could give a good opportunity if we break above resistance.
I suggest keep things on your watchlist as we come towards the end of the falling wedge.
Watchlist activated!
- Factor Four
The company is exploding on the subreddit in terms of comments, and the stock is moving in massive quantities. Some are making their exit as ROOT stock sees a boom and bust this morning, whereas others are buying in and predicting a squeeze that will boost their long positions.
If you don’t know already ROOT is a car insurance company with an innovative model. It insures only good drivers.
Users must download a location-tracking app to leave on when they drive during a test period.
Users deemed by the app to be a good driver are offered a competitive insurance premium through the company.
The result is that the company only insures drivers who are typically much safer. This allows ROOT to offer lower premiums than other insurers who must account for more dangerous clients.
ROOT stock is one of the more heavily shorted by Wall Street institutions; about 19.5% of ROOT’s float is being sold short. The r/WallStreetBets crowd has been recently pouring into the stock as a result.
When we look at the technical side of things ROOT seems to be sitting in a huge falling wedge on the daily chart since going public.
This could give a good opportunity if we break above resistance.
I suggest keep things on your watchlist as we come towards the end of the falling wedge.
Watchlist activated!
- Factor Four