ibkr gme 2021 Meme Stock Market Trends and Insights

Meme stocks like GME have been making headlines in 2021, with their wild price swings and unexpected gains. In this section, we'll dive into the market trends and insights that made IBKR's GME a hot topic.

The meme stock phenomenon was sparked by social media platforms, where retail investors shared and discussed their experiences with GME and other stocks. The result was a surge in trading activity and a significant increase in GME's price.

GME's stock price rose from $17.04 on January 4, 2021, to a peak of $483.00 on January 28, 2021, a staggering 2,820% increase in just 24 days. This rapid price movement caught many investors off guard and highlighted the risks and uncertainties of meme stocks.

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In early 2021, the stock market witnessed an unprecedented phenomenon driven by retail traders and social media platforms like Reddit's WallStreetBets.

Stocks like GameStop (GME) and AMC Entertainment (AMC) saw their prices skyrocket. This surge wasn't driven by traditional fundamentals or valuations – but by social media buzz and collective momentum.

GameStop's price skyrocketed to the point where it became a focal point for retail traders. The stock closed at around $49 after a highly volatile trading session.

The surge in GameStop's price was a result of social media buzz and collective momentum, rather than traditional fundamentals or valuations.

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IBKR's GME offering is a notable example of the growing trend of retail investors taking a more active role in the market.

In this market analysis, we'll explore the key factors that contributed to the success of IBKR's GME offering.

The offering was met with overwhelming demand, with over $3.5 billion in orders placed within the first hour.

This level of demand is a testament to the growing interest in the stock market among individual investors.

IBKR's GME offering was priced at $11.00 per share, which is significantly lower than the stock's pre-offering price of $347.51.

This pricing strategy allowed IBKR to capitalize on the high demand and generate significant revenue.

The offering was also notable for its large size, with IBKR selling 3.2 million shares of GME stock.

This large offering size helped to drive down the stock price, making it more attractive to individual investors.

The success of IBKR's GME offering has significant implications for the future of retail investing.

It demonstrates the ability of individual investors to drive market trends and influence stock prices.

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Options trading can be a high-risk, high-reward game, especially when it comes to stocks like GME. Elevated implied volatility in GME options presents opportunities and risks for traders.

Traders need to be acutely aware of premium levels in GME options. This is crucial for avoiding substantial losses.

A return to more normalized volatility levels could lead to substantial losses for those holding expensive options contracts.

Take a look at this: Ibkr Options Fees

If you've transferred shares into IBKR, check your cost basis to avoid any issues.

Often shares transferred to IBKR are missing their cost basis, so it's worth double checking before proceeding.

You can find your cost basis by looking at your account statements or contract notes from the broker you purchased the shares with.

To update your cost basis in IBKR, click on "Performance & Reports" from the top menu and select "Tax Documents".

The "Cost Basis" Section is located at the bottom of the page.

On a similar theme: Ibkr Fractional Shares

To fill out your cost basis, click on the cog-wheel icon next to "Position Transfer" and select the transfer from the dropdown menu.

If you're unsure about which shares you transferred, all share transfers are marked as First In, First Out by default, meaning the oldest shares transfer first.

To fill out each lot, provide the quantity of shares you purchased, the date you purchased those shares, and the total cost of those shares (be sure to remove any trading fees you paid).

Keep a record of your cost basis, as Computershare may not receive it.

Here's a step-by-step guide to updating your cost basis in IBKR:

GameStop's recent volatility has shown that meme stocks can be highly unpredictable, with the stock closing at around $49 after a highly volatile trading session.

Implied volatility has reached extraordinary levels in the options market, pushing up the prices of options contracts.

You can trade US stocks and ETFs, US equity index futures and options, and treasuries, plus global corporate bonds, European government bonds and UK gilts, when market-moving news happens.

IBKR's dual market centers ensure reliable and dependable overnight trading, allowing you to trade even when the market is closed.

The SMART + OVERNIGHT order type lets you submit orders in the overnight trading session that will also work through 8:00pm the following day as a SMART-routed order.

For more insights, see: Minimum to Trade Futures Ibkr