Shares of Opendoor Technologies Inc (NASDAQ:OPEN) are trading higher Thursday afternoon, mounting a recovery after a sharp mid-week sell-off.
What To Know: The stock is once again testing a critical technical barrier that has halted prior rallies. The volatile week began with a surge for Opendoor, fueled by growing investor optimism that the Federal Reserve is poised to cut interest rates. Favorable comments from Fed officials regarding inflation and monetary policy sent rate-sensitive sectors, like real estate, soaring.
For Opendoor, whose iBuying business model is heavily influenced by mortgage rates and housing market activity, the prospect of lower rates provided a substantial tailwind. This macroeconomic optimism was also bolstered by the company’s recently articulated vision for an AI-driven, multi-product future.
However, the rally hit a wall on Wednesday as the stock price approached the $4.85 level. This price has proven to be a point of resistance, marking the peak of at least four major rallies since mid-2023. Each time, the stock has met with significant selling pressure.
Price Action: According to data from Benzinga Pro, Opendoor shares are trading higher by 5.22% to $4.22 Thursday afternoon. The stock has a 52-week high of $5.87 and a 52-week low of 51 cents.
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How To Buy OPEN Stock
By now you're likely curious about how to participate in the market for Opendoor – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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