- The stock price of Almaden Minerals Ltd. (NYSEAMERICAN: AAU) has increased by over 75% pre-market. This is why it happened.
The stock price of Almaden Minerals Ltd. (NYSEAMERICAN: AAU) has increased by over 75% pre-market. One of the main triggers for the stock price increase has to do with the encouragement of buying up shares on social media.
On Reddit, Facebook, Twitter, StockTwits, and Discord, a group of investors launched AAU buying campaigns in order to increase the price of shares along with call options — gives buyers the right to buy the stock at a set price until a certain date. And short sellers — investors who borrow stock with a bet that the price will fall — have been buying the shares back soon in order to reduce more losses. Plus institutional investors are also buying shares to hedge against call options being bought. And this is part of a broader initiative by a group of activists who have been aiming to send a message to short-seller hedge funds.
In the case of Almaden Minerals, there has been a campaign on the Reddit forum /WallStreetBets that says banks are manipulating gold and silver for covering inflation.
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