Interactive Brokers Group (IBKR) Chairman Explains the GameStock (GME) Dilemma to Piper Sandler
- Tech stocks push S&P 500 to record close, buoy Nasdaq
- U.S. Calls for Pause of J&J (JNJ) Vaccine After Clotting Cases, Including One Death
- Coinbase (COIN) direct listing IPO reference price set at $250
- Biggest SPAC Deal Ever: Grab To Go Public in a $40 Billion Merger With Altimeter (AGC), Backed by Fidelity and BlackRock
- Oil rises after robust China data but J&J vaccine pause weighs
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
Piper Sandler analyst reiterated an Overweight rating and $82.00 price target on Interactive Brokers Group (NASDAQ: IBKR) after speaking with Founder and Chairman Thomas Petterfy about the recent retail trading phenomenon in "Reddit stocks" after short squeezes on popular stocks highlighted in the social media chatroom "WallstBets" during January 22-28 drove 4.6%-7.6% of total equity volumes and exhibited an average intraday volatility of 72.2% (compared to th S&P's 1.5%). While IBKR restricted trading in these stocks, the firm "has not experienced any losses"
During the call, "Mr. Peterffy stated that there was 140% short interest in GameStop (NYSE: GME). He asserted that if the 3.0 million outstanding call option contracts were exercised, it would drive short interest multiples higher than the current short interest. He explained that if the GME stock were to go to $1,000, then half or 1.5 mm contracts were sold short could be exercised at a ~$60,000+ loss per contract ($675 price move x 100 shares per contract). This would generate almost a $100 billion ($67,500 x 1.5 million contracts = $101,250 million) loss overall. Note, Mr. Peterffy later clarified that he believes the exposure could be closer ~$120 billion if you assume that most of the options were bought at strike prices between $100 to $300 per share".
Shares of Interactive Brokers Group closed at $61.19 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Wedbush Assumes Twitter, Inc. (TWTR) at Neutral
- Booking (BKNG) Upgraded to a 'Buy' at Jefferies as Travel Expected to Rebound in 2H2021
- UPDATE: CIBC Starts MAG Silver (MAG) at Neutral
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments
Related EntitiesStandard & Poor's
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!