Opendoor stock gained 42%, continuing its wild ride on July 21, which saw shares soaring more than double before being halted for volatility in the last hour of the session. Stocks were at their peak during the trading day, the rally reached as much as 115% before being halted due to a volatility-related trading halt that occurred at 3 PM ET. The stock crossed Nasdaq’s volatility limit on Monday afternoon and was halted for 10 minutes.
The Nasdaq volatility limit is generally triggered when stock prices rise too quickly, depending on the per-share stock value. However, even after the sudden stock soar, the prices are still behind their all-time high of $39.24 reached in February 21.
Surge Fueled by Retail Traders and Gamma Squeeze Buzz
The latest Opendoor price movement appears to be largely driven by retail momentum and speculative trading. According to options data, call volumes for Opendoor stock crossed 1 million contracts, signaling a massive increase in trader interest. This spike is tied to what analysts are calling an Opendoor gamma squeeze, a situation where market makers are forced to buy shares to hedge large volumes of call options, which in turn sends prices soaring.
Much like GameStop and AMC in their meme stock days, Opendoor retail traders on platforms like Reddit and X (formerly Twitter) pushed a coordinated effort to load up on short-term options. That buzz quickly turned into a self-feeding cycle, where every surge in price triggered more call buying and hedging activity.
Opendoor Trading Session Mirrors Meme Stock Pattern
Monday’s Opendoor trading session mimicked the kind of erratic behavior typically seen in meme stocks: sudden upward momentum, heavy volume, and multiple volatility halts. Trading was paused briefly after the stock hit a 115% intraday gain. Although it settled with a 42% rise by market close, the rapid swings left both institutional and retail investors stunned.
This trading pattern has become familiar in the post-pandemic market environment, where high-risk, high-reward bets often dominate speculative stocks. However, analysts have pointed out that despite the noise, Opendoor stock is still trading well below its historical highs, a reminder of the broader losses the stock has endured since its SPAC debut.
Analysts Warn of High Risk Amid the Frenzy
Market analysts are urging caution. While the Opendoor price movement looks impressive on paper, it may be disconnected from fundamental value. With the real estate sector still under pressure from high interest rates and cooling demand, Opendoor’s core business has not shown enough recent strength to justify such sharp upward moves.
“The volatility we’re seeing has more to do with short-term trading mechanics than long-term confidence,” one analyst noted. Indeed, the possibility of another Opendoor gamma squeeze or retail-driven surge remains, but so does the chance of a sharp reversal.
What’s Next for Opendoor Stock?
The coming weeks will likely reveal whether this rally has legs or was just another brief spike in an otherwise unstable market story. Investor sentiment will be key. Any positive developments in housing, AI integration into property tech, or earnings surprises could help build a case for longer-term growth.
