The 1 Thing Investors Are Overlooking With AMC, GameStop, and Sundial

Last year, stock market volatility reared its head in a manner never before witnessed by investors. The coronavirus pandemic sent equities skidding lower and ultimately cost the benchmark S&P 500 more than a third of its value in about a month.

This year, it's not the broad-based indexes that are being whipsawed. Rather, it's an obscure basket of a few dozen stocks that retail investors have latched onto.

In simple terms, retail investors (mostly young and/or novice investors) on Reddit's WallStreetBets (WSB) chatroom are banding together to buy shares and out-of-the-money call options in stocks with high levels of short interest. Short-sellers are investors who make money when the share price of a stock goes down.

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Source Fool.com