If you’ve been watching the market recently, you might’ve felt a wave of meme stock— like it’s 2021 all over again. Stocks like GoPro, Krispy Kreme , Opendoor Technologies, and Kohl’s— suddenly roared back to life.
$Opendoor Technologies Inc(OPEN)$ surged over 300% in just six sessions. $Kohl's(KSS)$ doubled intraday before pulling back. Then $GoPro(GPRO)$ and $Krispy Kreme, Inc.(DNUT)$ each spiked 40–70% in a single day.
No news. No earnings beats. Just volume explosions and option chains on fire. Classic meme behavior.
So, what’s going on? Is this another retail-driven frenzy? Is it sustainable? And more importantly — who’s next?
Why Meme Stocks Are Back
Let’s start with the obvious: the S&P 500 is at all-time highs. When risk appetite peaks, speculative assets — including SPACs, low-float stocks, and yes, meme favorites — get swept up. Add a dash of retail FOMO, a sprinkle of short interest, and a heavy pour of social media, and the cocktail starts mixing itself.
This time, the meme wave isn’t being led by GameStop or AMC. The cast is new, but the playbook remains the same: low-priced stocks, high short interest, option volume surging out of nowhere. On Reddit, Discord, and TikTok, retail traders aren’t talking about fundamentals — they’re asking one question: “Can this squeeze?”
The Setup: What These Stocks Have in Common
Take a closer look and you’ll see a pattern. Krispy Kreme has 28% short interest. Opendoor peaked above 20%. Kohl’s neared 50%. These are relatively small-cap names, often under $2B in market cap, trading under $10 — perfect conditions for a sharp squeeze.
Add to that the fact that institutions have mostly walked away. These stocks aren’t heavily covered by Wall Street. Liquidity is thin. Ownership is fragmented. It doesn’t take much to move the needle.
Options data confirms the firestorm: Krispy Kreme call volume exploded 70x above average in one day. GoPro’s short interest hit double digits and saw massive inflows into short-dated, out-of-the-money calls.
How to Play It ？
There are really two ways to look at this market:
Momentum chaser: If you’re trading the move, watch for volume spikes, price/volume confirmation, and option open interest. But don’t chase late — these trades unwind as quickly as they run up. Set stops. Protect capital.
Volatility trader: For the more risk-aware, consider playing the implied volatility. When IV spikes, shorting overpriced options or building gamma-neutral spreads can be lucrative — especially if the underlying stock cools off without follow-through.
Either way, this is not buy-and-hold territory. It’s fast, speculative, and unforgiving.
So… Who’s Next?
According to CNBC, several stocks are showing similar setups: short interest over 30%, market cap between $50M and $200M, and share prices under $20. These include: $Wolfspeed Inc.(WOLF)$ , $Iovance Biotherapeutics, Inc.(IOVA)$ , $Virgin Galactic(SPCE)$ $Novavax(NVAX)$ $Anavex Life Sciences(AVXL)$ and so on
If any of these tickers start popping on Reddit or X (formerly Twitter), and option volume starts building out of nowhere — pay attention. The next squeeze might already be brewing.
Final Word
Kohl’s dropped 14% the day after doubling. Opendoor pulled back 20% in two sessions. These trades can be exciting — but they’re rarely rational, and almost never sustainable. If you’re getting involved, know the risks, know your timeframe, and don’t get greedy.
Meme Mania 2.0 is here. Just remember: the music always stops. Make sure you’re not the last one dancing.
Comments