High Risk and Volatile Future

The speculative nature of Opendoor's rally is clearly reflected in its options market. Despite a low share price that is attractive to individual traders, options contracts are priced for extreme volatility. This indicates that Wall Street anticipates a massive price swing, with the potential for the stock to either double or collapse.

Retail Enthusiasm Meets Corporate Strategy

The surge was not entirely spontaneous. According to Tom Bruni of Stocktwits, the stock "needed a catalyst to kickstart a rally." Once Jackson provided it, "retail investors and traders sharing fundamental investment case…prices picked up steam."

This new environment has pushed Opendoor's management to engage directly with its retail investor base. These investors are now eagerly awaiting a clear turnaround plan that can justify the stock's meteoric rise.

For investors in the meme-stock ETF, the heavy concentration in Opendoor exposes them to the same risks. The fund's performance is now intrinsically tied to a highly speculative stock driven more by social media sentiment than by proven financial metrics.